Ellison and gary wang pled guilty last week to federal charges in connection with their roles in the frauds that contributed to ftx’s collapse. ellison admitted to providing “materially misleading financial statements to alameda’s lenders,” and testified that she was aware that ftx executives had implemented special settings on alameda’s ftx.com account which allowed the firm to maintain negative balances in various fiat currencies and crypto currencies. ellison acknowledged that she had understood that ftx would use customer funds to finance its loans to alameda.
Plea agreements happened last week, and took place in the southern district of new york. the news of their plea agreements was delayed until bankman-fried was en route to the u.s. from the bahamas after being released on a $250 million bond.
And wang were involved in a fraud that contributed to ftx’s collapse. they admitted to providing “materially misleading financial statements to alameda’s lenders,” and ellison acknowledged that she and other executives knew when alameda was over leveraged and what it meant for the exchange’s customers. to repay loans, ellison said she “agreed with others” to borrow billions of dollars from ftx, which most customers did not expect. ellison expressed her regret to the victims of the corporate collapse, apologizing for her actions and offering to assist with the recovery of assets.
https://decrypt.co/117989/caroline-ellison-knew-that-it-was-wrong-implicates-sam-bankman-fried
