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During a secret recording obtained by prosecutors, Caroline Ellison, the former CEO of Alameda Research, has revealed details of financial impropriety within the organization and its affiliate, FTX.
The government introduced the snippets of the recording during the questioning of Christian Drappi, a former Alameda employee who had provided the audio to prosecutors. The recorded confession starkly contrasted Ellison’s earlier, more subdued testimony during cross-examination by Bankman-Fried’s defense team.
During a regular biweekly meeting with Alameda staff the following day, Ellison came clean about the situation. According to Drappi, she appeared visibly distressed, sitting on a beanbag chair and sounding quiet and matter-of-fact as she explained, “Alameda borrowed a bunch of money to make illiquid investments… We ended up, like, borrowing a bunch of funds from FTX.”
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