Alameda Balance Sheets Rejected By Auditors In 2021-2022

Key Points:

• Sam Bankman-Fried’s lawyer hints at shifting blame to Caroline Ellison, the star witness in the DOJ’s case against FTX founder.
• Ellison reveals that multiple accounting firms declined to handle Alameda balance sheets, leading her to take over the task.

In the ongoing legal proceedings against cryptocurrency mogul Sam Bankman-Fried, his lawyer signaled a renewed attempt to shift blame for the collapse of FTX and Alameda Research onto the prosecution’s star witness, Caroline Ellison, who also happens to be Bankman-Fried’s former girlfriend.

Ellison Was the Person in Charge of the Alameda Balance Sheets

According to CoinDesk, Ellison, a key figure in the U.S. Department of Justice’s case against the FTX founder, recounted her job with Alameda balance sheets and offered insights into FTX’s internal accounting practices.

She revealed that Alameda had engaged several accounting firms in 2021-2022 but none were willing to handle their books. As a result, Ellison took over the task of preparing Alameda balance sheets, following initial work by former FTX Digital Markets CEO Ryan Salame.

During the cross-examination, defense counsel Mark Cohen probed Ellison about her early days at Alameda and references to disputes among employees before her arrival in 2018, though details of these disputes remained undisclosed.

Cohen also questioned Ellison about her ambition, to which she responded that while she hadn’t considered herself particularly ambitious early in her career, her drive had increased during her tenure at Alameda, which was encouraged by Sam Bankman-Fried.

Defense Strategy Shifts Focus to Star Witness in FTX Founder’s Trial

During her emotional testimony, Ellison disclosed a message she sent to Bankman-Fried in November 2022, when FTX and Alameda were facing collapse. In the message, she expressed relief that she no longer needed to lie. This poignant moment prompted the court to provide her with a box of tissues, underlining the complex dynamics surrounding the case.

The trial continues to unfold, shedding light on the intricate web of relationships and events leading up to the collapse of FTX and Alameda Research.

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