FTX Lawsuit: Alameda Research Execs Claim Sam Bankman-Fried Took Billions of Dollars in Secret Loans

Isaiah Richard, Tech Times 25 December 2022, 09:12 pm

Sam Bankman-Fried is in deep trouble with the FTX's downfall as it is, amidst the many charges filed against his name and the company. However, in the recent development of the case, Alameda Research executives who plead guilty in court to fraud charges, claimed that the former CEO took billions of dollars from the company in secret loans.

Allegedly, the executives claimed that this money was intended for the FTX team, alongside the unlimited loans that the company gets from the crypto-exchange platform's executives.

Alameda's Executives Claim SBF took Billions in Secret Loans for FTX

(Photo : Megan Briggs/Getty Images)

Reuters' report gave a deeper look into the ongoing court proceedings of the FTX's bankruptcy case and the criminal activities are allegedly done behind it. It involves Alameda Research executives, Caroline Ellison and Gary Wang who plead guilty to the fraud charges against them.

However, they also took this time as the opportunity to speak out, one that reveals more of what happened before its collapse.

According to Ellison, she helped SBF in hiding the fact that Alameda had a "virtually unlimited line of loans from FTX from investors" (via SlashGear). Moreover, her hand in this led to the "borrowing of billions of dollars in loans that Alameda had made to FTX executives."

Sam Bankman-Fried blames everything on Alameda Research Execs

These secret loans were recently unveiled in court, and this is after the many claims of Sam Bankman-Fried and his team that he is not guilty and knows nothing of the happenings that led to the company's demise.

Moreover, previous reports claim that SBF denied willful wrongdoings on his behalf, blaming all of the actions made by his associates and confidants like Ellison, and to lack of oversight.

FTX's Lawsuit and the Sam Bankman-Fried Controversy

FTX is in deep waters now, and part of it is the recent controversial bankruptcy filing of the company which took down all of its assets and fund with it. Part of this is the company's co-founder and CEO, Sam Bankman-Fried who lost all of his $16 billion wealth amidst the company's downfall, but that is not all there is to it.

Insiders and other sources claim that there was something fishy amidst this downfall, with several FTX claims and numbers not adding up.

For the longest time, its former CEO claimed that there were no criminal activities behind it, denying the fraud allegations launched against him in the multiple talks present.

However, there was a case built against the company and its executives, one that led to his arrest in the Bahamas, where he was extradited to the United States for a hearing.

Now, after his release on a $250 million bail, Bankman-Fried and his team are presenting their defense against the cases against them, with his recent claims of the Alameda Research executives being the culprits of the criminal activities. After the guilty plea, Ellison and the others also made their statement, claiming of Bankman-Fried's "secret loans" before FTX's collapse.