Key Points:
- According to a former Alameda engineer, based on CEO confessions, not internal alerts, Alameda’s collapse was exposed.
- Sam Bankman-Fried faces trial for alleged fund embezzlement.
- The trial offers a platform for presenting evidence and arguments.
Former Alameda Research CEO Caroline Ellison’s confession, rather than internal warnings, led to the revelation that the trading firm was on the brink of collapse, according to a recent CoinDesk interview with a former Alameda engineer, Aditya Baradwaj.
Former Alameda Engineer Reveals Shocking Inside Perspective
Baradwaj shared this insight with CoinDesk, shedding light on the unexpected nature of Alameda’s downfall. The former Alameda engineer stated that it appeared to be “business as usual” until the final days, which seemed like a flurry of trading activity. The shocking truth was only revealed on the last day when Caroline disclosed what had transpired behind closed doors.
These revelations ultimately led to the collapse of both Alameda and FTX, with criminal charges filed against Sam Bankman-Fried, the founder. Bankman-Fried’s trial on charges of fraud and conspiracy commenced on Wednesday.
Founder Sam Bankman-Fried Faces Trial Over Alleged Fraud
In a surprising turn of events, as the trial against Bankman-Fried unfolds, he now has a final opportunity to present his side of the story. Prosecutors allege that Bankman-Fried allowed Alameda to borrow vast sums from FTX, diverting the funds into various projects. This includes making substantial loans to FTX executives using customer funds, which were then spent on political donations.
Federal prosecutors argue that Bankman-Fried used FTX as a means to embezzle billions of dollars in customer funds. He purportedly indulged in speculative trading at Alameda Research, invested in real estate in Bahamas, and donated to the effective altruism movement that was believed to be the foundation of his business.
