Last Updated on December 25, 2022
Sam Bankman-Fried (SBF), directed his former girlfriend, who was also the CEO of his Alameda Research firm, to steal customer funds from the FTX cryptocurrency exchange, unsealed criminal court documents have revealed. A major political donor to both American parties, SBF and his Alameda cohorts funneled millions of corrupt dollars into the 2022 midterms, including money that GOP establishment leader Kevin McCarthy used to sabotage America First campaigns and prop up his loyalists.
Caroline Ellison, the former girlfriend of disgraced crypto mogul and uni-party bag man Sam Bankman-Fried, reached a deal with prosecutors, pleading guilty to seven charges of fraud and facing only financial penalties, thanks to her willingness to work with the authorities against SBF.
The former CEO of SBF’s crypto trading firm, Alameda Research, a separate entity from the FTX exchange, Ellison revealed in recently unsealed court documents that the firm was propped up with the stolen money of FTX customers, whose investments were stolen right out from under them.
“From 2019 to 2022, I was aware that Alameda was provided access to a borrowing facility on FTX.com, the cryptocurrency exchange run by Mr. Bankman-Fried,” Ellison says, according to court documents published by the Inner City Press.
“I understood that executives had implemented special settings on Alameda’s FTX.com account that permitted Alameda to maintain negative balances in fiat currencies and cryptocurrencies. In practical terms, this arrangement permitted Alameda access to an unlimited line of credit without being required to post collateral, without having to pay interest on negative balances, and without being subject to margin calls or FTX.com’s liquidation protocols,” Ellison explained.
Sam Bankman-Fried and his girlfriend CEO were making off with the fortunes of unsuspecting investors, who later lost everything when FTX went belly up, ballooning the pocketbooks of not just themselves and Alameda executives, but of uni-party politicians – the same politicians who are now telling the American people that they can be trusted to investigate the political depth of the FTX scandal.
Among those dogged the most by the FTX scandal has been GOP establishment leader Kevin McCarthy, whose bid for Speaker of the House has been marred by his big money ties to the Sam Bankman-Fried, Ryan David Salame, and the FTX exchange.