In a recent testimony, Caroline Ellison highlighted intricate financial transactions between Alameda Research, FTX, and Tether. The revelations contradict earlier claims regarding the issuance and distribution of tethers (USDT), adding more complexity to the ongoing legal battles of Sam Bankman-Fried.
Ellison revealed that $2 billion out of $10 billion from FTX customers in Alameda's account was returned as stablecoins. This statement challenges previous assertions that Alameda issued about 37 billion USDT, with 30 billion going to FTX and most of the remaining to Binance and Huobi. The exact origin of these tethers, whether they were generated by Alameda's profitable trades or not, remains uncertain amidst Bankman-Fried's ongoing legal issues.
Further complicating the matter is the 'Fiat Integration Agreement' between an FTX group company and iFinex, which is associated with Bitfinex cryptocurrency exchange and Tether. Both Bitfinex and Tether share stakeholders like Digfinex.
Paolo Ardoino, a prominent figure in this scenario, previously denied on Twitter any credit exposure between Tether and FTX or Alameda. However, contradicting Ardoino's claims, Gary Wang testified that Alameda had been leveraging customer funds since 2019.
The evolving situation casts a spotlight on the complex financial relationships between these entities and raises questions about their operations. As these revelations continue to surface, the industry will be closely watching for further developments.
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