Sam Bankman-predicament Fried’s is made worse by the former CEO of Alameda Research’s continued disclosure of information regarding the FTX scandal.
With the finding of intentional fund commingling, it appears that the co-founder of FTX may wind up facing many more accusations.
Sam Bankman-founder Fried’s has been accused of fresh offences by Caroline Ellison, the former CEO of FTX’s subsidiary business Alameda Research. Ellison claims that Bankman-Fried knew about and helped to enable the comingling of customer monies.
Ellison admitted that she was aware of Alameda and FTX’s wrongdoings during a plea hearing on December 19 in a federal court in Manhattan. She said that from 2019 until the exchange’s insolvency, FTX provided funding to Alameda Research.
In Ellison’s words, “In terms of actuality, this agreement gave Alameda access to an unrestricted line of credit without the need to submit security, without negative balances, and without being subject to margin calls under the liquidation procedures of FTX.com.
According to Ellison, Bankman-Fried was aware of the arrangement and both officials hid it from lenders. False financial statements and bogus loans to FTX officials were made in order to conceal the extent of borrowing by Alameda.
