Caroline Ellison admits she and Sam Bankman-Fried misled lenders

Sam Bankman-Fried’s ex-girlfriend surprisingly confessed in secret court proceedings that she knew “it was wrong” to participate in his alleged fraud scheme, according to a transcript released Friday.

“I’m so sorry for what I did,” Caroline Ellison said. “I knew it was wrong.”

Ellison, 28, pleaded guilty on Monday to federal fraud charges in connection with his role as CEO of hedge fund Alameda Research, which allegedly received billions of dollars from Bankman’s now bankrupt FTX cryptocurrency exchange. -Fried.

Ellison admitted in Manhattan federal court that she “understood that many FTX clients invested in crypto derivatives and that most FTX clients did not expect FTX to loan out their digital assets and deposits. in fiat currency to Alameda in this manner”.

FTX co-founder Gary Wang also pleaded guilty in FTX’s $8 billion meltdown, and he and Ellison are cooperating with federal authorities, Manhattan U.S. Attorney Damian Williams revealed Wednesday.

Ellison pleaded guilty Monday to federal fraud charges.


Sam Bankman-Fried, Founder of FTX

FTX founder Sam Bankman-Fried has been released on $250 million bail.


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Gary Wang

Gary Wang also pleaded guilty.

The FTX Arena Logo

FTX was founded in 2019.


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Bankman-Fried, 30, was extradited from the Bahamas on Wednesday to face an eight-count indictment that carries a maximum of 115 years in prison.

He was released on $250 million bail and placed under house arrest at his parents’ $4 million home in Palo Alto, Calif., near Stanford University, where they are both law professors.

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