Arrangements between friends. Statements by Caroline Ellison at the trial of Sam Bankman-Fried will make date in crypto history! Even if it’s just his word against SBF’s for now, the evidence, documents and testimonies are dangerously consistent, and the main culprit is literally getting himself overwhelmed by her former partner and mistress. In front of a stunned audience, she rattles off a series of anecdotes and revelations, while every word she utters is instantly relayed on social networks and cheerfully commented on. Don’t miss any of this historic trial by following our article, updated in real time. For now, let’s take a look back at an episode symptomatic of the company’s disastrous and dishonest management. FTX with a very particular approach to accounting.
Caroline Ellison’s statements on the stand overwhelm Sam Bankman-Fried
Before going any further, let’s salute the hard work of Matthew Russell Lee who is following the entire SBF trial for his organization called Inner City Press. Thanks to these live messages from the courthouse, the entire community and specialized media have an eye and an ear on events. And that was yesterday, Caroline Ellison has once again stirred up the debate with revelations that confirm the amateurishness and malice of the FTX executive. This time it concerns a meeting that was to have taken place with Matt Ballensweigco-head of trading and lending at Genesis.
In preparation for this interview, the teams at Genesis had requested information about Alameda’s financial situation. Problem? Sam Bankman-Fried refuses to let Genesis notice the irregularities in the balance sheet. The rest is Caroline Ellison’s story:
« Sam said not to send the balance sheet to Genesis. We had borrowed $10 billion from FTX and lent $5 billion to our own officers and affiliates. We thought Genesis could share the information. »
Caroline Ellison on a financial statement to present to Genesis – Source: Inner City Press
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FTX reportedly arranges balance sheets to appear less indebted to potential financial partners
So how do you make yourself look good to potential future partners? The answer comes from Sam Bankman-Fried, again according to Caroline Ellison:
« He told me to find alternative ways of presenting information. He wanted me to hide things about our balance sheet. So I prepared seven different balance sheets. I didn’t want to be dishonest, but I presented them to Sam and let him choose. It was up to him. »
Caroline Ellison on a financial statement to present to Genesis – Source: Inner City Press
What will be the balance sheet chosen by Alameda ? Ms. Ellison acknowledges that it is the last version that will be chosen, the one that omits to mention the 9.9 billion that the company owes to FTX customers. This will show Alameda in a better light, according to the woman who knowingly drew up a false document to this effect. June 22, 2022.
Another day at the SBF trial. A new revelation barely imaginable. These two juggled and gambled with their clients’ billions of dollars without any awareness of the risks they were taking. Asked how she felt about the fact that almost $10 billion of FTX customers’ money ended up on Alameda’s balance sheet, she replied: « I didn’t feel good. If people found out, they would have all tried to get out of FTX. What would have happened? « Well, we didn’t have the money. ». Next question.
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