Court Report Shows Sam-Bankman Fried Persuaded Caroline Ellison Not to Resign

In a recent revelation, the former chief executive of Alameda Research, Caroline Ellison, reportedly suffered from an atrocious experience at work months before the collapse of the Bahamian crypto exchange FTX. The report indicated that the troubled CEO had planned to step down from office due to poor performance of the business.

The 28-year-old executive who testified on the rise and the fall of the FTX two days ago had journaled her career projection in her notebook. A prosecutor at Sam-Bankman Fried’s ongoing trials revealed Ellison’s intention to quit Alameda.

Former Alameda CEO Attempted to Leave Office Before the Collapse of FTX

Addressing the jury, Ellison confessed that her communication with her former boss and ex-boyfriend was on silent treatment. The executive disclosed that before the fallout of FTX, Ellison and Bankman-Fried were not on good terms.

Her relationship with the crypto tycoon took a turn in April 2022 after they ended their love affair. Even though the two lived in the same apartment in the Bahamas, Ellison avoided any interaction with her boss.

The executive admitted that from the failed relationship with her former boss and Alameda business losses, Ellison contemplated leaving the company. In an earlier conversation with Bankman Fried, Ellison confessed that Alameda had reported poor performance in the preceding months.

Ellison complained that neither she nor Bankman was doing great at the workplace. Commenting on the slew of complaints presented by Ellison Bankman, urged her to remain.

The troubled crypto entrepreneur argued that the departure of Ellison would create speculation concerning the financial stability of Alameda. He added that her departure could erode FTX’s credibility score.

Also, the resignation of Ellison could negatively affect the company’s performance. This forced Bankman to react and persuaded Ellison to retain her position.

Reviewing of Caroline Ellison Achievements at Alameda Research

The report indicated that Ellison’s career has been facing ups and downs. Despite having a progressive career trajectory, Ellison ascended to the executive position in 2020 to succeed Bankman Fried.

At that time, Bankman Fried had revealed plans to step aside and focus on building his new venture FTX. The promotion allowed Ellison to co-lead Alameda with Sam Trabucco.

In her admission, Ellison opposed the establishment of FTX since she was cynical about her strengths and weaknesses. After completing her internship at Jane Street Capital, Ellison did not consider herself a dedicated employee.

Ellison’s career took a positive turn after she joined Alameda in 2018. In her statement, Ellison was pleased to state that the leadership of Bankman Fried made her more ambitious.

The embattled crypto mogul’s influential capabilities nurtured Ellison to become a leader and oversee the operation of Alameda. A review of Ellison’s job description revealed that the CEO oversaw the borrowing and lending of Alameda funds.

During her tenure, the Alameda open-term loans reached $1.3 million while  FTX line of credit stood at around $13 billion. The attempt to balance cash inflow and outflow compelled the Alameda team to adopt an effective strategy that supported the company’s operation.

Alameda Research Ups and Down

In an early dialogue with Bankman Fried, Ellison confessed that his boss instructed him to utilize the FTX assets in compensating Alameda, the crypto lender. Following the November 2022 liquidation of FTX, the lenders worried and demanded loan repayment. The distress crypto lender also demanded Alameda’s financial report to be audited.

As the pressure for loan repayment continued to pile up, the Bankman ordered Ellison to commit a financial miscalculation on the books of account. The former CEO stated that she was instructed to explore alternative methods for representing the financial reports.

Guided by Bankman’s advice, Ellison was forced to present falsified balance sheets to deceive the crypto lenders. In November, one of the fake Alameda balance sheets was leaked while Ellison was out of office.

The fake financial report attracted speculation from Alameda’s key stakeholders. Market critics noted that the figures on the balance sheet were inaccurate. The leaked balance sheet forced Ellison to return from vacation to fix the mess.

Editorial credit: Sergei Elagin /

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