crypto strategy

Former Alameda Research CEO Ellison ‘truly sorry’ for fraud offenses

Former Alameda Research CEO Caroline Ellison has revealed she feels remorse for her crypto fraud actions.

A close associate of former FTX CEO Sam Bankman-Fried, Ellison revealed in her recently unsealed testimony from her to plead guilty this week that she was “truly sorry” for her involvement in the FTX crypto fraud.

According to the wall street journal On Friday (December 23), Ellison revealed during her hearing that she was conspiring to use billions of dollars from FTX client accounts to pay off loans that crypto platform Alameda took out to make risky investments.

Additionally, other FTX executives had created special settings that gave Alameda access to an unlimited line of credit, another breach Ellison was aware of during his time at the company.

“I also understood that many FTX clients invest in crypto derivatives and most FTX clients did not expect FTX to lend their digital assets and fiat currency deposits to Alameda in this way” , she said in testimony.

Crypto fraud regulation is gaining notoriety as the crypto trading industry recovers from bankruptcy announcements from exchanges like FTX and BlockFi over the past month.

As a result, the executives of these crypto companies need to explain why these companies have so publicly failed and what that means for their customers.

For example, Sam Bankman-Fried also faced court hearings this week, culminating in his released from custody on a $250 million bond on Thursday.

At the time, he was also ordered to live at his parents’ home in California, be electronically monitored and restricted from traveling in parts of California and New York.

According to reports, Magistrate Judge Gabriel Gorenstein in New York said he agreed to the deal because he believed Bankman-Fried was not a flight risk, posed no risk to the community and would be easily recognized if he tried. hide.

Another FTX co-founder, Gary Wang, also pleaded guilty on Thursday to four fraud charges and agreed to cooperate with the US Department of Justice in exchange for bail.

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