{"id":173431,"date":"2023-10-13T11:42:26","date_gmt":"2023-10-13T06:12:26","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=173431"},"modified":"2023-10-13T11:42:26","modified_gmt":"2023-10-13T06:12:26","slug":"secret-alameda-recording-reveals-exact-moment-staff-learned-about-ftx-deposits-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/secret-alameda-recording-reveals-exact-moment-staff-learned-about-ftx-deposits-crypto-news\/","title":{"rendered":"Secret Alameda recording reveals exact moment staff learned about FTX deposits – Crypto News"},"content":{"rendered":"
\n

A 75-minute secretly recorded audio clip of Caroline Ellison has revealed the exact moment 15 former Alameda Research staff found out the hedge fund was \u201cborrowing\u201d user funds from FTX.\u00a0<\/p>\n

The full-length recording, obtained by Cointelegraph, provides fresh insights into the palpable tension felt by Ellison and Alameda staff in the lead-up to FTX\u2019s collapse<\/a>. <\/p>\n

\u201cAlameda was kind of borrowing a bunch of money via open-term loans and using that to make various illiquid investments. So like a bunch of FTX and FTX US equity […] Most of Alameda’s loans got called in in order to meet those recalls,\u201d Ellison explained during an all-hands meeting in Hong Kong on Nov. 9, 2022. <\/p>\n

\u201cWe ended up like borrowing a bunch of funds from FTX, which led to FTX having a shortfall in user funds.\u201d<\/p><\/blockquote>\n

\u201c[FTX] basically always allowed Alameda to borrow users\u2019 funds,\u201d she added, speaking to the 15 or so staff in the meeting. <\/p>\n

Select segments of the audio recording of the meeting were also played before the court on the eighth day of Sam Bankman-Fried\u2019s criminal trial on Oct. 12, which was part of a witness testimony from Christian Drappi, a former software engineer at Alameda. <\/p>\n

Drappi\u2019s appearance on the witness stand came immediately following nearly three days of Ellison\u2019s testimony<\/a>. It is understood that before the meeting, Drappi and many other Alameda employees had no idea that the hedge fund had allegedly been using FTX customer deposits to prop up its trading activity. <\/p>\n

In the recording, Drappi is also overheard asking Ellison when she became aware that FTX user deposits were being misused by Alameda, and who else at the company had known about it. <\/p>\n

Initially Ellison flinched away from answering, but Drappi pressed again: <\/p>\n

\u201cI\u2019m sure this wasn\u2019t, like, a YOLO thing, right?\u201d<\/p><\/blockquote>\n

Related: <\/em><\/strong>Changpeng Zhao\u2019s tweet \u2018contributed\u2019 to collapse of FTX, claims Caroline Ellison<\/em><\/strong><\/a><\/p>\n

According to court reporting from the trial, the playback of this audio led to one of the more humorous moments in court, where Drappi had to explain the term \u201cYOLO\u201d to everyone in attendance, saying that he wanted Ellison to confirm that the use of FTX deposits hadn\u2019t just been a \u201cspontaneous\u201d decision. <\/p>\n

In his testimony, Drappi also described Ellison\u2019s conduct at the meeting as \u201csunken\u201d and didn\u2019t display much in the way of confidence to Alameda employees. He said that he was \u201cstunned\u201d to learn about the extent of the relationship between FTX and Alameda, and he quit the next day. <\/p>\n

Speaking to Cointelegraph, Alameda Research engineer Aditya Baradwaj, who was also present at the meeting said the room was \u201cextremely tense,\u201d with Ellison surfacing a wealth of new information that had \u201cnever been discussed internally\u201d \u2014 including the later-abandoned acquisition of FTX<\/a> by its then-largest competitor Binance. <\/p>\n

\u201cIt became pretty clear that there was no future for the company and that we all had to leave. And we did that right after,\u201d said Baradwaj.<\/p>\n

Magazine: <\/em><\/strong>How to protect your crypto in a volatile market \u2014 Bitcoin OGs and experts weigh in<\/em><\/strong><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A 75-minute secretly recorded audio clip of Caroline Ellison has revealed the exact moment 15 former Alameda Research staff found out the hedge fund was \u201cborrowing\u201d user funds from FTX.\u00a0 The full-length recording, obtained by Cointelegraph, provides fresh insights into the palpable tension felt by Ellison and Alameda staff in the lead-up to FTX\u2019s collapse. […]<\/p>\n","protected":false},"author":2,"featured_media":173432,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-173431","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/173431","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=173431"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/173431\/revisions"}],"predecessor-version":[{"id":173434,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/173431\/revisions\/173434"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/173432"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=173431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=173431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=173431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}