Testifying on the sixth day of Sam \u201cSBF\u201d Bankman-Fried\u2019s criminal trial in New York, former Alameda Research CEO Caroline Ellison admitted to providing fudged numbers for review by Genesis.<\/p>\n
According to reports from the courtroom on Oct. 11, Ellison claimed Bankman-Fried directed her to create \u201calternative\u201d balance sheets on Alameda\u2019s use of crypto exchange FTX\u2019s 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.<\/p>\n
\u201cSam said, \u2018Don\u2019t send the balance sheet to Genesis,\u2019\u201d said Ellison, according to reports. \u201cWe 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.\u201d<\/p>\n
Ellison returned to the witness stand at SBF\u2019s 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\u2019s financials:<\/p>\n
\u201cI was worrying about customer withdrawals from FTX, this getting out, people to be hurt […] I didn\u2019t feel good. If people found out [about Alameda using FTX funds], they would all try to withdraw from FTX.\u201d<\/p><\/blockquote>\n
The former CEO answered in the affirmative when prosecutors asked her if she considered her actions to be \u201cdishonest\u201d and \u201cwrong.\u201d 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.<\/p>\n