{"id":71901,"date":"2022-12-24T10:15:11","date_gmt":"2022-12-24T08:15:11","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=71901"},"modified":"2025-09-08T11:47:07","modified_gmt":"2025-09-08T08:47:07","slug":"caroline-ellison-admits-deliberate-misrepresentation-to-alameda-creditors-about-the-exchanges-loan-amount","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/caroline-ellison-admits-deliberate-misrepresentation-to-alameda-creditors-about-the-exchanges-loan-amount\/","title":{"rendered":"Caroline Ellison admits deliberate misrepresentation to Alameda creditors about the exchange’s loan amount"},"content":{"rendered":"

Former Alameda Research chief Caroline Ellison told the court that, together with FTX founder Sam Bankman-Fried, she deliberately misled creditors about the amount of the loan provided to the firm by the exchange. This is reported by Bloomberg<\/a> citing the transcript of a December 19 hearing.<\/p>\n

Ellison said that she \u201cknew this was wrong.\u201d<\/p>\n

\n

“From 2019 to 2022 I was aware that Alameda had access to loans at FTX. This mechanism allowed Alameda to obtain access to an unlimited line of credit without collateral,” she explained.<\/p>\n<\/blockquote>\n

The former Alameda CEO admitted that together with Bankman-Fried they decided to conceal such an agreement from creditors and to falsify financial reports to cover it.<\/p>\n

At the same hearing, FTX co-founder and the exchange’s chief technology officer Gary Wang said he had been directed to make changes to the platform’s code that granted Alameda special privileges.<\/p>\n

The executive said he knew it was wrong.<\/p>\n

Wang also acknowledged that the changes distorted the company’s position for investors and customers.<\/p>\n

Meanwhile, U.S. District Judge Ronnie Abrams of the Southern District of New York recused herself due to a possible conflict of interest. The law firm Davis Polk & Wardwell, in which her husband is a partner, advised FTX in 2021.<\/p>\n

It remains unclear why Abrams did not recuse herself earlier. The timetable for appointing a new judge was not specified.<\/p>\n

Earlier Ellison and Van pleaded guilty<\/a> to charges related to the FTX collapse<\/a> and agreed to cooperate with the investigation. The former head of Alameda Research told about manipulating the price<\/a> of the FTT utility token at SBF’s direction.<\/p>\n

As noted, arrested<\/a> in the Bahamas, Bankman-Fried agreed to extradition<\/a> to the United States, where he was released on bail<\/a> of $250 million.<\/p>\n

Read ForkLog’s Bitcoin news on our Telegram<\/a> \u2014 cryptocurrency news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"

Former Alameda Research CEO Caroline Ellison told the court that, together with FTX founder Sam Bankman-Fried, she deliberately misled creditors about the amount of the loan provided to the firm by the exchange.<\/p>\n","protected":false},"author":1,"featured_media":71902,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1435,1162,1236],"class_list":["post-71901","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-alameda-research","tag-court-cases","tag-ftx"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71901","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=71901"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71901\/revisions"}],"predecessor-version":[{"id":71903,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71901\/revisions\/71903"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/71902"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=71901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=71901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=71901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}