FTX CEO Stayed at Bankman-Fried's Urging Despite Wanting to Quit, Helped Hide $8B Shortfall That Led to Firm's Collapse

Caroline Ellison wanted to step down as CEO of Alameda Research in 2022 but feared it could trigger a bank run on FTX.

Ellison remained CEO at Bankman-Fried's request, who said her departure could spark rumors and jeopardize FTX.

As CEO, Ellison handled Alameda's crypto lenders and lied about the company's balance sheets.

In November 2022, a leaked Alameda balance sheet sparked a bank run that exposed an $8 billion gap between Alameda and FTX.

Having cooperated with the DOJ since December, Ellison awaits sentencing on fraud charges related to FTX's collapse.