Alameda’s ex-CEO Ellison says she and Bankman-Fried misled FTX lenders
- Ellison said she was aware that Alameda was given access to a borrowing facility on FTX.com from 2019 through 2022
- Separately, FTX’s former chief technology officer Gary Wang said he was “directed” to change FTX platform’s code to give Alameda special privileges
Ellison gave her first public account of her actions in a December 19 plea hearing in Manhattan federal court. “I knew that it was wrong,” she said, according to a transcript of the hearing. FTX co-founder Gary Wang also gave a statement that day.
“From 2019 through 2022, I was aware that Alameda was provided access to a borrowing facility on FTX.com, the cryptocurrency exchange run by Bankman-Fried,” Ellison said. “In practical terms, this arrangement permitted Alameda access to an unlimited line of credit without being required to post collateral, without having negative balances and without being subject to margin calls on FTX.com’s liquidation protocols.”
Bankman-Fried, 30, is charged with orchestrating a years-long fraud in which he used billions of dollars of FTX customer funds for personal expenses and high-risk bets through Alameda. In interviews following FTX’s bankruptcy, Bankman-Fried repeatedly said he was unaware of what went on at Alameda, a defence undermined by the statements from Wang and Ellison.
