The Crypto Roundup: 11 October 2023 | CryptoCompare.com

The former CEO of Alameda Research and ex-girlfriend of FTX founder Sam Bankman-Fried (SBF), Caroline Ellison, has revealed in court that SBF had “directed” her to use customer funds to pay back loans.

Ellison testified that Alameda took around $14 billion from FTX customers and used the funds to repay loans and to trade. Per Ellison, Alameda was able to return some of those funds to the exchange before the collapse.

During the trial, Ellison also revealed that SBF “was the one who set up these systems that allowed Alameda to take the money and he was the one who directed us to take customer money to repay our loans.”

Ellison also revealed that, at the direction of Bankman-Fried, she sent the firm’s lenders balance sheets “that incorrectly stated the amount of our assets and our liabilities and made Alameda’s balance sheet look less risky than it really was.” At times, according to Ellison, she raised concerns about the line of credit Alameda being spotted by auditors.

She also revealed SBF decided to buy back FTX’s equity from Binance with customer funds, received a large percentage of FTT’s supply when the token was launched, and was instructed to defend specific FTT price levels at times.

Bankman-Fried defense has maintained that Alameda acted rationally in its dealings with FTX, and asserted in their statements that the firm’s troubles were caused by Ellison’s failure to follow SBF’s warning to safeguard the company from crypto market volatility.

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• Source: https://www.cryptocompare.com/email-updates/daily/2023/oct/11/