Caroline Ellison, CEO of Alameda Research FTX, finally admits to the crime of money laundering and calls out FTX former CEO, Sam Bankman Fried (SBF) as an accomplice.
Ellison Assents To Money Laundering Charges
The sister exchange of FTX, Alameda Research, which was thought to be the mastermind behind the FTX crash, has actually been the subject of investigations and satisfies all allegations of being the force behind the crash.
Ellison, the CEO, recently admitted to money laundering crimes, stating that she and SBF had misappropriated investor funds for their own benefit while also allocating those funds to the development of the Alameda Research.
She also admitted that she had concealed a billion-dollar loan from the headquarters to the Alameda research division in addition to her plea.
She provided the court with a wealth of inside information during the hearing on April 19th, claiming that SBF and other executives as well as management teams had also profited handsomely from Alameda Research and FTX money laundering operations.
Statements made by Ellison portrayed the FTX exchange as a bank of resources for all of their endeavours, giving them funds to carry out their operations; This, in this instance, involved user funds.
Also read:To the creditors and investors who were injecting millions of dollars into FTX, Ellison and SBF collaborated to conceal this evidence and proof of knowledge, according to a transcript.
Sam Bankman Fried’s Innocence In Question
According to an excerpt from Ellison’s plea declaration, the team always produced an audited balance sheet that obscured information about the billions of dollars that were borrowed from the FTX exchange, which misled investors to believe that their funds were secure in the exchange.
Alameda used the FTX borrowing protocol to borrow millions of dollars from the exchange from 2019 to 2022 without being required to repay them or do any other action. In order to keep this behavior under wraps and secret, this also entailed reporting fictitious transactions and balances.
The final proceedings in the Caroline Ellison case, which involved her taking a guilty plea and disclosing additional damaging reports and evidence of the FTX and Alameda Research operations, were announced by the U.S. Department of Justice on December 23.
Sam Bankman Fried, on the other hand, continues to assert his innocence, claiming that his company’s demise was not legally his fault.
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