Alameda Executive Says She Is ‘Truly Sorry’ for Her Role in FTX Collapse

Written By Madelyn S

The New York Times, December 23, 2022: Alameda Executive Says She Is ‘Truly Sorry’ for Her Role in FTX Collapse

“A former top executive at a trading firm closely tied to FTX said she was ‘truly sorry’ for defrauding customers, investors and lenders in pleading guilty to criminal charges stemming from the collapse of the cryptocurrency exchange last month.

“‘I knew that it was wrong,’ Caroline Ellison, the former executive, told a federal judge in Manhattan on Monday in entering her guilty plea, according to a transcript of the hearing that was unsealed on Friday.

“Ms. Ellison, 28, has agreed to help federal prosecutors build their case against Sam Bankman-Fried, the disgraced founder of FTX and a co-founder of Alameda Research, the trading firm that Ms. Ellison had run.

“Ms. Ellison made admissions that offered a glimpse into how she might be a powerful witness against Mr. Bankman-Fried. She said she went along with the decision of Mr. Bankman-Fried and others not to disclose the close relationship between FTX and Alameda, and the decision to divert billions in customer deposits at FTX to pay off loans of Alameda.”

Madelyn S
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