Over seven months after crypto exchange FTX initiated Chapter 11 proceedings, baffling details about Sam Bankman-Fried’s girlfriend Caroline Ellison were found in documents accessed by The New York Times.
Ellison is the chief executive officer of crypto hedge fund Alameda Research, which was at the core of fund mismanagement behind the failed financial empire run by Bankman-Fried. Interestingly, the documents revealed that Ellison had full knowledge that things were going awry months before the situation unfolded in November 2023.
The FTX collapse had a blanket effect on cryptocurrency prices for over a month’s time in the last quarter of 2022, as retail and institutional investors lost millions of dollars in investments. Ellison reportedly wrote in her personal notes three months before the collapse that she was “unhappy and overwhelmed” with her job as Alameda CEO.
The FTX management is currently fighting several lawsuits across the world over allegations of fund mismanagement. As part of the ongoing trial of Sam Bankman-Fried, prosecutors have accessed documents and notes belonging to Ellison.
The Alameda CEO felt like going home and turning off her phone to escape from the drama around FTX and Alameda Research. Ellison reportedly wrote in an online note:
In the months to come, Ellison will face trial proceedings over Bankman-Fried’s charges of misusing billions of dollars of user money. The former FTX CEO is facing eight counts of fraud surrounding fund mismanagement.