Seven “alternative” balance sheets that Caroline Ellison produced concealed Alameda’s exposure to FTX.
In the ongoing trial of Sam “SBF” Bankman-Fried in New York, the former CEO of Alameda Research, Caroline Ellison, took the witness stand. During her testimony on the sixth day of the trial, she disclosed that she had presented SBF with seven different spreadsheets containing misleading financial data about Alameda’s financial status, intended for Genesis lenders’ review. On October 11, reports from the courtroom indicated that Ellison confessed to having been directed by Bankman-Fried to create “alternative” balance sheets related to Alameda’s use of crypto exchange FTX’s funds. She detailed how she had provided these seven spreadsheets, one of which SBF later presented to Genesis. Shockingly, none of these documents revealed that Alameda had borrowed a substantial $10 billion from FTX. Ellison quoted Sam as saying, “Don’t send the balance sheet to Genesis,” and revealed that they had a significant $10 billion borrow...