$13 Billion Loan Revelation Emerges in Bankman-Fried Trial
In a trial that has garnered significant attention, new revelations have come to light regarding the financial activities of Alameda Research.
Testifying during the ongoing trial of Sam Bankman-Fried, former Alameda CEO Caroline Ellison disclosed that the company had borrowed a staggering sum of over $13 billion from FTX in the summer of 2022.
The Wall Street Journal’s coverage of the trial uncovered these substantial financial dealings, which coincided with the exchange’s collapse.
It was reported that lenders had been pressing Alameda for the repayment of “billions of dollars in loans” in June 2022. Notably, the company had already amassed a debt of “$13.25 billion” from FTX.
Ellison’s testimony provided further insights into these financial transactions. Under the direction of Bankman-Fried, Alameda initiated the process of repaying the lenders. The company ultimately returned the lender’s liquid assets and FTX customer deposits.
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Ellison’s testimony also highlighted her reservations about using FTX customer funds for these repayments.
This aspect lies at the heart of the allegations against Bankman-Fried, who is accused of consistently defrauding investors by employing their funds without consent.
The trial of Sam Bankman-Fried is set to continue capturing headlines for the next five weeks, with testimonies from close associates providing valuable insights into previously undisclosed details.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
