Revenge of the crypto nerd

October 14, 2023

Dear Reader,

"[FTX] basically always allowed Alameda to borrow users' funds."

With those words of admission, Sam Bankman-Fried's fate is closer to being sealed.

Here's the background:

On November 9, 2022, Alameda Research CEO Caroline Ellison told 15 employees about how the company had used FTX customer deposits… which… helped lead to the company's eventual collapse.

Someone secretly recorded her.

A 75-minute audio clip has surfaced revealing all the juicy details.

In a nutshell, Ellison explained how Alameda borrowed funds from FTX, causing FTX to have a shortfall in those funds.

She did not explain how her rather terrible trading greatly contributed to that shortfall. But that's a story for another email.

The audio clip was played during Bankman-Fried's ongoing fraud trial.

Apparently, the key employees who got briefed by Ellison had no idea about the relationship between Alameda and FTX.

Or how FTX hid losses or andbagged lenders.

The problem for Bankman-Fried is that he blamed the downfall of FTX on Ellison.

She is exacting her revenge in open court on her old flame

We'll see how the drama plays out.

Until then… traders who want to take advantage of dramatic price swings of select altcoins can use Cointelegraph Markets Pro to get alerts about market developments known to move crypto prices.

Regards,

Max K.
Markets Pro Team