The 28-year-old CEO of the failed cryptocurrency company Alameda Research, Caroline Ellison. She is under criticism for the billions dollar collapse of the company as well as reports that she was Sam Bankman-ex-girlfriend, Fried’s disgraced creator of FTX.
After a shocking investigation by CoinDesk. It came out that Ellison and Bankman-Fried were part of a “cabal of roommates.” They were operating out of a “luxury penthouse” in the Bahamas. Additionally, they were responsible for the schemes at FTX and Alameda. As a result, about 130 FTX Group affiliates, including Alameda, were listed in a Chapter 11 bankruptcy petition made last week.
In addition to being former coworkers at the quantitative trading firm Jane Street. The housemates are also former Massachusetts Institute of Technology classmates of Bankman-Fried.
The report stated that the 10 insiders’ relationships went beyond work and that some of them “are, or used to be, partnered up in romantic relationships with each other.”
When Ellison and Bankman-Fried were in charge of the now-bankrupt Bitcoin empire, they occasionally dated. The empire’s value dropped from over $32 billion at its height to essentially to zero due to a sharp collapse.
A person who knew the situation said, “The whole operation was run by a gang of kids in the Bahamas.”
Another person informed the publication that “they’ll do anything for each other.”
Ellison, a native of Boston, studied at Stanford University. Additionally worked as a trader at Jane Street before being associated with FTX and Alameda.
Ellison liked Harry Potter books during her childhood
Amid the firm’s collapse, social media users combed through her previous appearances. Including a now-viral podcast appearance from July 2020. Ellison discussed her love of LARPing, a role-playing game. In that game, players dress up as and portray fictional characters and their childhood passion with the Harry Potter books.
“I was pretty obsessed with Harry Potter as a kid,” Ellison said. “I started, I was 3 when the first book came out, my parents read it aloud to me, and when I was 5, the second book came out, I refused to wait for my parents to read it, so I read it myself.”
Since November 9, Ellison hasn’t tweeted or commented on the bankruptcy.
Current and former staff at FTX and Alameda claimed that Bankman-Fried and his associates essentially went amok with no oversight. Additionally, significant conflicts of interest raised concerns among employees.
Other “roommates” in the Bahamas besides Ellison and Bankman-Fried included Gary Wang, FTX’s co-founder and chief technology officer. As well as Nishad Singh, FTX’s director of engineering, is also included.
The employees claimed they were not given much information about what was happening at the top of the bitcoin companies as they descended into bankruptcy.
“Gary, Nishad, and Sam control the code, the exchange’s matching engine, and funds,” one of the sources said. “If they moved them around or input their numbers, I’m not sure who would notice.”
A request for comment from the news panel went unanswered from Ellison and Bankman-Fried.
The Post has requested a response from FTX. Unfortunately, the website for Alameda Research appears to be unavailable.
Bankman’s FTX collapsed
Alameda had a significant role in FTX’s collapse, which quickened after CoinDesk revealed the cryptocurrency hedge fund had a sizable stake in FTT, a token produced by FTX.
Since FTX’s demise, it is estimated that between $1 billion and $2 billion in client funds have vanished. In addition, the money used to finance the firm’s risky trades is said to have been “secretly transferred” by Bankman-Fried from FTX to Alameda in the amount of $10 billion.
“I disagree with the characterization” of the $10 billion in moved cash, Bankman-Fried reported.
Bankman-Fried asserted, “We didn’t secretly transfer.” Instead, “We had confusing internal labeling and misread it.”
Bankman-Fried listed his apartment at the upscale Albany resort in the Bahamas earlier this week for close to $40 million.
Although it’s unknown how many houses will be published in the coming days. It is reported that all of the FTX high brass have residences in the area.
The Albany Club, the most prestigious resort neighborhood in the Bahamas, has also come under fire. Members include Tiger Woods and Justin Timberlake.
According to remarks made by Albany partner Jason Callender a few years ago, the area was designed to serve “a new breed of the global elite.”
However, Albany Club General Manager Damien Michelmore informed residents via email over the weekend that Sam Bankman-company, Fried’s FTX, had declared bankruptcy and asked them not to speak to the media.
