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ihavestrings OP t1_j1hvcyw wrote

tldr

A judge kept secret that two of Sam Bankman-Fried's closest associates had turned against him so the cryptocurrency entrepreneur wouldn't get spooked and fight extradition from the Bahamas, according to court transcripts made public Friday.

Ellison is the former chief executive of Bankman-Fried's cryptocurrency hedge fund trading firm, Alameda Research.

In court Monday, Ellison said since FTX and Alameda collapsed in November, she has "Worked hard to assist with the recovery of assets for the benefit of customers and to cooperate with the government's investigation."

Ellison said she knew that if Alameda's FTX accounts had significant negative balances in any currency, it meant that Alameda was borrowing funds that FTX's customers had deposited into the exchange.

"I also understood that many FTX customers invested in crypto derivatives and that most FTX customers did not expect that FTX would lend out their digital asset holdings and deposits to Alameda in this fashion."

From July to October, Ellison said, she agreed with Bankman-Fried and others to provide misleading financial statements to Alameda's lenders, including quarterly balance sheets that concealed the extent of the company's borrowing and the billions of dollars in loans it had made to FTX executives and others.

During his plea earlier Monday, Wang said that he made changes to computer code to enable the transactions with Alameda.

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Phantom-Z t1_j1jy1fu wrote

This is an absolute savage move by the U.S Attorney’s office, good on them. This scumbag deserves to rot. Especially after the last few weeks of arrogant interviews trying to proclaim his own innocence.

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jb_in_jpn t1_j1kcmef wrote

Yeah. But she deserves to as well…

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JuiceColdman t1_j1l02pw wrote

This is how the system works. Go easier on the henchmen so they’ll cooperate to help bag the mastermind

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jb_in_jpn t1_j1l2uie wrote

I never stated otherwise. I simply said she deserves to rot in jail as well, even if she rats on the others.

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BLT-Enthusiast t1_j1lfh0z wrote

Yeah but unfortunately if you break the deals you offer people stop taking them so it would be bad long term to ignore the deal with her

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jb_in_jpn t1_j1lo6zd wrote

That’s quite true, but I just don’t see the need for pleas here; the evidence and insight into the fraud is right there.

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captain554 t1_j1ku4j2 wrote

Had he not given any interviews he probably would be in less trouble. In the interviews he strongly alluded to the fact that all customers money was in one big bucket and Alameda had open access to all of it. His justification was that some of those customers agreed to the terms of service that allowed for the trading/risk. Too bad "some" doesn't mean "all."

He is definitely going to rot.

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magicbeansascoins t1_j1lzlqa wrote

Gary must have been talking to authorities prior to the public bankruptcy. Nishad to perhaps?

Caroline appears to be relatively new to talking.

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