Caroline Ellison provided 7 ‘alternative’ balance sheets hiding Alameda’s exposure to FTX
Testifying on the sixth day of Sam “SBF” Bankman-Fried’s criminal trial in New York, former Alameda Research CEO Caroline Ellison admitted to providing fudged numbers for review by Genesis.
According to reports from the courtroom on Oct. 11, Ellison claimed Bankman-Fried directed her to create “alternative” balance sheets on Alameda’s use of crypto exchange FTX’s funds. She reportedly testified that she had provided seven spreadsheets, one of which SBF presented to Genesis. The document did not reveal that Alameda had borrowed $10 billion from FTX.
“Sam said, ‘Don’t send the balance sheet to Genesis,’” said Ellison, according to reports. “We were borrowing $10 billion from FTX, and we had $5 billion in loans to our own executives and affiliated entities. We thought Genesis might share the info.”
Ellison returned to the witness stand at SBF’s trial after first appearing in the courtroom on Oct. 10. In contrast to her earlier testimony, prosecutors questioned the former Alameda CEO about her feelings surrounding her deception about the firm’s financials:
The long awaited courtroom sketch of Caroline Ellison testifying against SBF at his trial.
Hell hath no fury like a woman scorned. pic.twitter.com/37RZk9yt3j
The former CEO answered in the affirmative when prosecutors asked her if she considered her actions to be “dishonest” and “wrong.” Ellison has largely placed the blame leading to the events surrounding the collapse of FTX on SBF due to his alleged direction surrounding the misuse of customer funds, while defense lawyers seem to be framing the former Alameda CEO as the instigator.
Related: Sam Bankman-Fried aspired to become US president, says Caroline Ellison
Ellison is expected to be a star witness for the prosecution
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