Caroline Ellison, the former CEO of Alameda Research was allegedly involved in Sam Bankman-Fried’s FTX collapse.
Reports have been out this week which showed Caroline Ellison’s FTX margin account has a loss of about $1.3 billion.
When she faced technical issues with her trading account, Ellison shared this information regarding her balance on FTX in May 2022 with several FTX employees which are now out by certain media platforms.
According to the reports, Ellison supposedly had a negative balance of roughly $1.31 billion in May 2022. If a user has a negative amount for a specific reason, for example, because a payment wasn’t received or the user was in debt from margin positions, all FTX accounts display negative balances.
The reportedly Ellison-related data displays a significant sum that no regular person would have, as well as a negative amount of FTX equity.
The reports point to a significant amount of FTT, megaserum (MSRM), locked megserum (MSRM), locked serum (SRM), locked maps (MAPS), Solana (SOL), Ethereum (ETH), bitcoin (BTC), and stablecoins worth millions of dollars.
It also indicates the user’s negative balance obliged to pay or held in a margin position. Nearly every account, which is allegedly linked to Alameda CEO Ellison, is negative by about $1.31 billion.
Since FTX effectively extended a substantial line of credit to Alameda Research, the margin position ultimately experienced extreme stress and blew out.
A huge gap exists when the margin position is negative $1.31 billion. Trades done with borrowed money are referred to as margin positions, and if the trader is unable to maintain the minimum needed margin, the position is often liquidated to pay back the borrowed money. The Terra LUNA scandal occurred at the same time as the huge margin position shared in May 2022.
In the fall of 2021, cryptocurrency values were almost at all-time highs, but by the beginning of 2022, they had started to decline and many lending and investing companies in the market were under financial strain.
The Wall Street Journal reported that during a video meeting earlier this month, before the company and FTX filed for bankruptcy, Ellison informed the Alameda staff about FTX using customer funds to help Alameda meets its obligations and added that she, Bankman-Fried, and other members of the firm’s management were aware of the decision.
Caroline Ellison served as the CEO of Alameda Research, a trading company that used FTX customer money to cover losses and place dangerous bets. When FTX and Alameda Research declared bankruptcy, she was fired.
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Until recently, Ellison was considered the person behind the success of FTX and its owner Sam Bankman-Fried, who was hailed as a crypto wunderkind.
The two Tumblr blogs and a Twitter account that match Ellison’s personal and professional details have become the internet’s most reliable source of information about the former CEO after the collapse of FTX. They provide what may be an insight into the 28-year-private old’s ideas, particularly her opinions on bitcoin trading.
Caroline Ellison has been spotted in New York, putting a stop to online rumors that she tried to evade US law and raising speculation that she would be working with the US authorities on the collapse of FTX.
Two images that appeared to show Ellison at the Ground Support Cafe in Manhattan with Gopher, a golden doodle puppy owned by officials at Alameda and FTX, started making the rounds on Twitter.
Ms. Ellison, who was raised in the Boston area and is the daughter of MIT economists, was known for her dedication to her studies and her leadership of the math team at Newton North High School. She graduated from Stanford with a degree in Mathematics. She and Bankman-Fried met at the trading company Jane Street Capital.
Ellison was named co-CEO of Alameda with Sam Trabucco in October 2021. Later in August 2022, she became the CEO of Alameda Research after Trabucco stepped down from the position.
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