Former Alameda Research CEO Caroline Ellison has confessed that she and FTX’s founder Bankman-Fried have approved the materially misleading financial statements for Alameda lenders in the plea hearing held in the Southern District of New York. According to the court’s transcript, the former Alameda’s CEO said she had knowledge of FTX’s arrangement to allow Alameda to have unlimited borrowing facility without being required to post collateral, without having to pay interest on negative balances and without being subject to margin calls or FTX.com’s liquidation protocols. She also added that she understood such arrangement was used to misappropriate clients’ funds to finance loans to Alameda. According to the plea deal, she will be spared of all major charges.
Source: https://cointelegraph.com
