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Document Claims Alameda CEO Caroline Ellison’s FTX Margin Position Was Negative $1.3B in May 2022 – Bitcoin News


In several recent interviews, former FTX co-founder, Sam Bankman-Fried (SBF), explained that he “doesn’t run Alameda” and that he “didn’t know the size of their position.” In a more recent discussion with The Block’s Frank Chaparro, SBF explained that the auditor is looking at FTX’s corporate finances, but the auditor “doesn’t consider the client’s position and does not consider the risk customer risk.” This week, an FTX insider speaking to Bitcoin.com News on condition of anonymity shared a document showing that the personal account of Alameda Research CEO Caroline Ellison suffered a loss of 1.31 billion dollars in May 2022.

SBF interviews continue to highlight a large margin position that has gone awry

There has been a lot of information shared by former FTX co-founder Sam Bankman-Fried (SBF) in his interviews, and it seems that somehow, without his knowledge, an account Large margin got out of control. This thing has been blame about “badly labeled accounting” practices, and the SBF said he was “damn it.”

“Frankly, in many ways. About letting a margin position get too big, bigger than I thought. And not thorough enough to capture that,” SBF told New York Magazine. The large margin position, which caught the SBF off guard, was mentioned in many FTX reports and in SBF interviews.

“We shouldn’t have taken such a large margin position,” SBF emphasized to New York Magazine reporter Jen Wieczner. “It’s too big. And it’s too big, given the liquidity of the collateral,” added SBF. In a separate statement, the SBF detailed that Alameda’s margin position is so large that it “will not be able to close in a liquid manner to fulfill its obligations.”

SBF added: “Looking back, that position appears to have grown significantly by the middle of this year. The FTX co-founder continued:

That makes it go from a slightly risky position to one that is too large to manage during a liquidity crunch, and it will seriously jeopardize a client’s ability to move funds.

During the most SBF recent interview With The Block’s Frank Chaparro, the former FTX CEO said that regulators and auditors did not see any financial vulnerabilities because the client’s location and Alameda Research’s location were not included in the report. FTX’s financial statements. SBF said the auditors looked at certain aspects, but they “didn’t look at the client’s position and didn’t look at the client’s risk”.

“This is actually a negative client position and many clients have opened negative positions on FTX,” SBF told Chaparro. “Those are not part of FTX’s assets or liabilities, they are customer assets and liabilities, so FTX’s finances are not directly affected by this.” Chaparro’s interview also talks about how top executives have “extended their personal lines of credit.”

FTX internal documents allegedly show Caroline Ellison’s margin position as $1.3 billion loss

This week, a document was sent to Bitcoin.com News that allegedly shows Caroline Ellison’s balance on FTX seven months ago in May 2022. According to a source familiar with the matter, Ellison shared the data. data with some FTX staff when she had an issue. a technical problem with her personal trading account.

A screenshot of the alleged margin position was shared by Caroline Ellison in May 2022 to several FTX employees. It is assumed that this position belongs to the CEO of Alameda Research.

The document clearly shows Ellison had a negative balance of about $1.31 billion at the time in May 2022. All FTX accounts show a negative balance, if the user has a negative balance because specific reasons, such as unsettled payments or users already in debt from margin positions. The document, allegedly related to Ellison, shows huge balances that no ordinary user has, including negative amounts of FTX equity.

FTX accounts show negative balances for a few specific reasons.

The documents our newsstand viewed showed negative user balances owed or held on margin, indicating a large amount of FTTmegaserum (MSRM), locked megaserum (MSRM), serum locked (SRM), map locked (MAPS), solana (SOL), ethereum (ETH), bitcoin (BTC) and multi-million dollar stablecoins. User balances, believed to be related to Alameda CEO Ellison, show nearly every account being negative compared to about $1.31 billion.

chaparro Note around 9:30 in his interview, Ellison mentioned that FTX extended quite a bit of credit to Alameda Research. “[Ellison] say you know, that Gary knows,” Chaparro insisted in his question, and he said people in both companies knew about these lines of credit. “I think she might be right, that Alameda Research was effectively extended a substantial amount of credit by FTX and eventually that margin position became severely strained and it went bankrupt. .”

A negative margin position of $1.31 billion, like the one revealed to our newsstand this week, is a huge hole. Margin positions refer to trades made using borrowed funds and usually, if the trader is unable to maintain the required minimum margin, the position is liquidated for completion. pay the loan amount. Large margin position shared in May 2022, is about same time frame the Terra LUNA fiasco happened.

The insider, who shared documents allegedly related to Ellison, asked “how could a friend of SBF create a debt of this size” without collateral. ?” There are a lot of unanswered questions coming back to Ellison and everyone has investigate CEO of Alameda for quite a long time. Ellison is detection report in New York this past weekend with an FTX office dog named ‘Gopher’.

Cards in this story

Balance Alameda, Alameda CEO Caroline Ellison, Research Alameda, transaction Alameda, Balance, Caroline Ellison, debt, debt on collateral, Ellison’s balance, Frank Chaparro, FTT, ftx, FTX collapsed, FTX failure, interview, Pay, Money is locked, Locked amount, margin, Margin position, Negative 1.3 billion dollars, Negative balance, New York Magazine, Sam Bankman-Fried, sbf, serous, SRM

What do you think of the document that allegedly shows Caroline Ellison having a negative margin position of $1.3 billion in May 2022? Let us know your thoughts on this topic in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the crypto community since 2011. He has a passion for Bitcoin, open source, and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about the groundbreaking protocols emerging today.




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