Alameda borrowed huge amounts of money from other crypto lenders to fund Bankman-Fried’s investments and donations, but as the price of crypto assets plummeted through 2022, those lenders demanded their money back. Ellison and her colleagues paid it back with customer money, she said, something the platform’s users weren’t aware was happening.
And when investors asked questions, she, Bankman-Fried and other colleagues agreed to lie, covering up the company’s true financial state and the special arrangements for Alameda to use customer assets freely, Ellison told the judge.
“I agreed with Mr. Bankman-Fried and others to provide materially misleading financial statements to Alameda’s lenders,” she said. “I am truly sorry for what I did. I knew that it was wrong.”
The judge asked if she knew it was illegal, too. “Yes,” she said.
Source: Who is Caroline Ellison, the trader at the center of FTX’s collapse? – The Washington Post