Secret recording of all-hands Alameda meeting played in court leaks online

An audio signaling played successful tribunal connected the seventh time of the SBF proceedings has surfaced online, revealing erstwhile Alameda Research lawman Caroline Ellison’s disclosure to employees astir the misuse of lawsuit funds days earlier Alameda’s collapse.

The recording, present disposable connected SoundCloud, was posted by Insider newsman Sarah Gray connected the evening of Oct. 12 and has since begun to marque rounds connected societal media.

According to Ellison’s disclosure during the meeting, Alameda Research misused billions successful FTX lawsuit funds for high-risk task investments and to work Alameda’s loans. The startling revelation came connected the eve of Alameda’s illness and the consequent bankruptcy filings for FTX and affiliated companies.

Ellison previously testified astir a bid of crimes allegedly orchestrated and executed by ex-FTX CEO Sam Bankman-Fried. Ellison, having pleaded blameworthy to utilizing billions from FTX users for Alameda’s benefit, claimed that Bankman-Fried had established the systems that facilitated these transactions. Ellison admitted to sending equilibrium sheets that painted a little risky representation of Alameda than was accurate, contributing to a misunderstanding of Alameda’s fiscal health.

Ellison further testified that Alameda had received betwixt $10 cardinal and $20 cardinal from FTX and 3rd parties, with astir $2 cardinal spent to repay loans, invest, and behaviour stablecoin conversions. The remaining funds, she stated, were utilized for Alameda’s ain purposes and different activities. Ellison’s revelations align with the grounds of FTX co-founder and erstwhile CTO, Gary Wang, describing an unlimited borrowing argumentation that allowed Alameda to retreat coins adjacent if these assets were not connected hand.

Caroline Ellison has been among the government’s prima witnesses successful its lawsuit against the disgraced crypto mogul. She and Gary Wang some pled guilty to their respective charges stemming from the illness of FTX successful December 2022. Bankman-Fried has maintained his innocence.