Benzinga - In a revelation that has sent shockwaves through the crypto community, Caroline Ellison, a key figure in the trial of FTX founder Sam Bankman-Fried, on Wednesday disclosed her role in preparing not one, but seven different balance sheets for Genesis, months before the company's bankruptcy.
Inner City Press reported that these balance sheets were tailored to present varying financial scenarios.
This development becomes even more pertinent considering Benzinga's upcoming Future of Digital Assets conference on Nov. 14. Scheduled to host a gamut of industry stalwarts, the conference will undoubtedly spotlight the importance of ethical financial practices in the digital assets world, using Ellison's testimony as a compelling backdrop.
According to court reports, Ellison, under instructions from Bankman-Fried, prepared seven different balance sheets to present information in alternative ways.
The intent was ostensibly to obfuscate certain financial realities from stakeholders. Ellison presented these alternatives in June 2022, allowing for selecting a version that omitted the disclosure of $9.9 billion owed to FTX customers.
Also Read: Caroline Ellison Drops Bombshell: Bankman-Fried Wanted To Be President
This move, if revealed to the public, would have potentially led to a massive withdrawal from FTX, given that Alameda did not have the funds to cover such a withdrawal.
Ellison's communications with Bankman-Fried, including details about the controversial balance sheets, were largely carried out through platforms like Slack, Telegram, and Signal.
The latter, known for its encryption and self-destruct features, was highlighted when it was revealed that messages were set to erase after a specified time, reducing the digital footprint of sensitive conversations.
Adding to the intrigue, Ellison also mentioned a $1 billion freeze in China and alluded to a bribe made to Chinese government officials.
However, this claim was struck from the record by Judge Lewis Kaplan.
The judge emphasized that Bankman-Fried was not being charged with bribery of Chinese officials in this case.
As the court proceedings continue to unravel the inner workings of FTX and Alameda Research, investors will get the most timely insights at events like the upcoming Benzinga conference, where industry leaders will shape and influence the narrative for the future of digital assets.
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