Private letters from Caroline Ellison months before Alameda, FTX collapse uncovered in forensic investigation
Date: 2023-07-20 Categories: CRYPT
A new report from The New York Times has revealed that Caroline Ellison, the former CEO of Alameda Research, kept personal diaries before the collapse of Alameda Research and FTX, the crypto empire led by Sam Bankman-Freed. This revelation comes before the Bankman-Freed trial, where Allison is to testify as a key witness.
As The New York Times previously reported, Bankman-Fried is accused of misappropriating billions of dollars from customer accounts. Documents unearthed by lawyers involved in the Bankman-Freed criminal trial could provide important insight into the dynamics of Bankman-Freed's business dealings and his relationship with Ellison.
Star witness
The discovery of these personal documents could play an important role in Bankman-Freed's upcoming trial. Because Allison is a close associate of Bankman-Freed and a central figure in his operations, Allison's personal and professional views are likely to be critical to her testimony.
The documents show that Allison, a central figure in the Bankman-Freed business empire, had self-doubt and felt overwhelmed by her role at Alameda Research. She expressed concerns about her suitability for a leadership position, and also detailed the strain in her personal life caused by her turbulent relationship with Bankman-Freed.
Court documents also point to a stark pay disparity between Ms Allison and her co-CEOs at FTX and Alameda Research. Despite her high position, she received noticeably less remuneration than her colleagues. Of the $3.2 billion allocated for payments and loans to the founders and key personnel of the exchange, Ms. Allison's share was only $6 million. This contrasts sharply with the $587 million that went to Nishad Singh, FTX's head of engineering, and the $246 million received by Gary Wang, the company's co-founder. The largest compensation package, a staggering $2.2 billion, went to Sam Bankman-Fried himself. It remains unclear whether Ellison was aware of this dramatic wage gap at the time.
The severity of the allegations against Bankman-Fried and the collapse of FTX made headlines in the crypto world. The now-defunct FTX was once one of the world's largest cryptocurrency exchanges, and its fall has sparked widespread investigation and legal repercussions. Ellison's acknowledged letters, although not published, offer a unique inside look at the decline of this crypto giant.
As The New York Times previously reported, Bankman-Fried is accused of misappropriating billions of dollars from customer accounts. Documents unearthed by lawyers involved in the Bankman-Freed criminal trial could provide important insight into the dynamics of Bankman-Freed's business dealings and his relationship with Ellison.
Star witness
The discovery of these personal documents could play an important role in Bankman-Freed's upcoming trial. Because Allison is a close associate of Bankman-Freed and a central figure in his operations, Allison's personal and professional views are likely to be critical to her testimony.
The documents show that Allison, a central figure in the Bankman-Freed business empire, had self-doubt and felt overwhelmed by her role at Alameda Research. She expressed concerns about her suitability for a leadership position, and also detailed the strain in her personal life caused by her turbulent relationship with Bankman-Freed.
Court documents also point to a stark pay disparity between Ms Allison and her co-CEOs at FTX and Alameda Research. Despite her high position, she received noticeably less remuneration than her colleagues. Of the $3.2 billion allocated for payments and loans to the founders and key personnel of the exchange, Ms. Allison's share was only $6 million. This contrasts sharply with the $587 million that went to Nishad Singh, FTX's head of engineering, and the $246 million received by Gary Wang, the company's co-founder. The largest compensation package, a staggering $2.2 billion, went to Sam Bankman-Fried himself. It remains unclear whether Ellison was aware of this dramatic wage gap at the time.
The severity of the allegations against Bankman-Fried and the collapse of FTX made headlines in the crypto world. The now-defunct FTX was once one of the world's largest cryptocurrency exchanges, and its fall has sparked widespread investigation and legal repercussions. Ellison's acknowledged letters, although not published, offer a unique inside look at the decline of this crypto giant.
