FTX Adviser Admits Providing False Balance Sheets at Bankman-Fried's Direction to Hide Alameda's Use of Customer Funds

Caroline Ellison, a top adviser to Sam Bankman-Fried, said she sent “dishonest” balance sheets to major FTX lenders at his direction.

Ellison said the phony balance sheets concealed that Alameda Research borrowed billions from FTX customers.

Ellison admitted she considered the false financial statements to be dishonest but followed Bankman-Fried's instructions.

Ellison testified the misleading balance sheets were intended to hide Alameda's reliance on FTX customer funds.

Ellison broke down crying during an August 2022 call when Bankman-Fried angrily blamed her for Alameda's financial problems.