FTX Collapse Driven by Lies, Misuse of Funds, and Bankman-Fried's Obsession with Image
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Ellison testified that Bankman-Fried directed her to lie about Alameda's balance sheet to hide loans taken from FTX customer funds. She cried recounting the collapse.
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Bankman-Fried micromanaged his public image, considering his hair "very valuable" and driving a Toyota Corolla for PR. He made media investments for influence.
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Bankman-Fried tried to extract funds from Chinese exchanges, directing staff to open accounts with fake IDs and pay bribes when legal means failed.
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Ellison felt constant dread as lenders demanded repayment in mid-2022, knowing FTX lacked funds since they were spent on Alameda.
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Ellison expressed relief when the collapse happened, ending her need to lie. She felt "indescribably bad" for betraying FTX customers' trust.