Democrat Joe Biden has been linked to the worst financial scandal of our time since FTX’s Sam Bankman-Fried and Alameda Research gave more than $10 million to his campaign in 2020, and new disturbing revelations about their collaboration are emerging.
“In the U.S., Sam Bankman-Fried is persona non grata. But in interviews across the Bahamas, residents say that his crimes were hardly comparable to the gang violence of the island and expressed fears of economic fallout if crypto investors don’t return,” The New York Times reported about the massive scandal, trying to soft peddle Fried’s criminal activity for FTX.
FTX Trading Ltd., sometimes known as FTX, is a defunct corporation that ran a cryptocurrency exchange and crypto hedge fund in the past. At its height in July 2021, the exchange had over one million customers and was the third-largest cryptocurrency exchange by trading volume.
According to the most current CNN story, “The stunning collapse of one of crypto’s most prominent firms has quickly morphed into a legal battle pitting former executives and ex-romantic partners against one another. Last week, as FTX founder Sam Bankman-Fried was being extradited to the United States from the Bahamas, two of his former business partners pleaded guilty to multiple charges of fraud and conspiracy.”
Caroline Ellison, former CEO of Alameda, and Gary Wang, co-founder of FTX, have both pled guilty to several offenses and are collaborating with federal authorities.
According to court transcripts, Ellison, the former 28-year-old CEO of the crypto hedge fund Alameda, apologized before a federal judge in New York, stating that she and her former collaborators stole billions of dollars from users of Bankman-FTX Fried’s exchange and attempted to cover it up.
“I am truly sorry for what I did,” Ellison told the court. “I knew that it was wrong.”
Ellison told the court that Alameda had a practically unlimited ability to borrow from FTX, and she was aware that the exchange would need to utilize client cash to finance loans to the hedge fund. She also committed to conceal the extremely tight relationship between the two companies from investors and consumers.
“From July through October, she told the court, Ellison agreed with Bankman-Fried and others to provide “materially misleading financial statements to Alameda’s lenders,” and prepared balance sheets that concealed the extent of Alameda’s borrowing, according to transcripts from plea hearings held on December 19 and recently unsealed,” CNN reported.
ABC reports that Ellison has been charged with seven crimes, including wire fraud conspiracy and money laundering. She and Bankman-Fried dated briefly while being close business friends.
More on this story via The Republic Brief:
Ellison said she knew that FTX executives created an arrangement that permitted Alameda access to an unlimited line of credit without being required to post collateral or pay interest on negative balances, according to the transcript.
Vince Quill reported for our friends at We Love Trump about the newest details:
The more we know about the FTX scandal the worse it gets… CONTINUE READING…