Former Alameda chief knew about multi-billion dollar deficit | Global CRYPTO News
Former Alameda chief knew about multi-billion dollar deficit long before FTX collapsed
In March 2022, former Alameda Research CEO Caroline Ellison reported in a memo about a $10 billion deficit in FTX that collapsed in November. This is stated in court documents.
In August of that year, company executives calculated that the bitcoin exchange owed more than $8 billion to customers, which it “could not repay.”
According to the case file, the new management of FTX is currently trying to recover "millions of dollars" in cash and withdraw more than $1 billion from allegedly fraudulent transactions.
Earlier, Ellison and the CTO of the exchange, Gary Wang, pleaded guilty to charges related to the collapse of FTX and agreed to cooperate with the investigation. The ex-head of Alameda Research spoke about manipulating the price of the FTT utility token.
Allison also admitted to knowingly defrauding creditors. According to her, she "knew it was wrong." The head of Alameda, along with former head of FTX Sam Bankman-Freed, hid agreements from investors and forged financial statements.
At the same hearing, FTX co-founder and exchange CTO Gary Wang said he was "sent" to make changes to the platform's code that gave Alameda special privileges.
In November 2022, the new CEO of the exchange, John Ray, said that the company had absolutely no control over the movement of funds and reliable financial information.
Recall that in March 2023 it became known that Bankman-Fried received $ 2.2 billion from FTX and Alameda Research
The US Attorney's Office charged Bankman-Fried with 13 criminal offenses. He pleaded not guilty to any of the counts.
