It is revealed that Caroline Ellison and Gary Wang turned against SBF in latest filings with the court of The Southern District of New York
The court of the Southern District of New York filed documents yesterday on its case between the SEC and Caroline Ellison and Gary Wang. This is the first real look we get from the inside, with Caroline and Gary seemingly cooperating with federal officials. SBF had consistently stated throughout his media tour that he simply didn't know what was going on. The filings state, "Wang created and participated in the creation of the software code that allowed Alameda to divert FTX customer funds. Ellison, in turn, used the misappropriated FTX customer funds for Alameda's trading activity. And Bankman-Fried used those customer funds to make undisclosed venture investments, lavish real estate purchases, and large political donations." The document also says that SBF directed Caroline to borrow billions of dollars from third-party lenders using FTT as collateral, and to engage in automatic purchases of FTT on secondary markets to inflate the value of Alameda's collateral backing the outstanding loans. It also came to light that this wasn't something that began this bear market. It had been this way since the beginning of the company's inception. While SBF has tried to deny any involvement in Alameda, Gary and Caroline confessed that, "Bankman-Fried remained the ultimate decision maker at Alameda, even after Ellison and Trabucco became co-CEOs in or around October 2021."
We recommend checking out the full document, but it has become clear that Gary and Caroline have turned against SBF to save themselves. It looks like Sam (my name is forever tainted) is heading for prison with haste.
- Sam Martin |
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THORChain may be the best alternative to CEX. They are building a DEX that removes the need for cross-chain bridges by enabling native asset swaps between chains. They are also building decentralized alternatives to CeFi products that have previously blown up that enable users to earn a passive yield paid out in the asset that is being provided without sacrificing self-custody (think BlockFi and Celsius). Chad Barraford, the lead developer at THORChain, joined us on 0xResearch to discuss the protocol at a granular level. Be sure to check it out on Apple, Spotify, or YouTube. |
Alternative L1s were the talk of the town heading into 2022 with the monster rallies of SOL, NEAR, and AVAX back in 2021. However, 2022 has proven to be a difficult year for the 'SOLUNAVAX' rotatoooors. Just ask Mr. Zhu, the co-founder of now bankrupt Three Arrows Capital, who quite possibly was the first domino to fall that led to the collapse of Celsius, BlockFi, FTX, Alameda, and now 'strapped for liquidity' DCG/Genesis. ETH is down around 60-70% YTD, with NEAR, SOL, and AVAX down 90% or more, and LUNA trading near zero. |
There is no greater power as an analyst or serious investor in this industry than the combination of granular crypto knowledge and the ability to query a chain to answer the questions that pop into your head. There are quite literally only a handful of people in the world who possess this skill set. As such, I wanted to highlight a great opportunity brought forth by the team at Dune. Their '12 Days of Dune' course, available for free on Andrew Hong's substack, is an excellent opportunity to dive into the basics around querying a chain and visualizing the data to provide valuable insights. I am embarrassed to admit that I have not yet taken the course myself, but I will be over the holidays. Feel free to message me on telegram (@swmartin19) next week to chat about how our learnings are coming along! Side note: Flipside is another incredibly powerful tool that enables you to accomplish the same goal. |
Arweave allows permanent data storage across a decentralized network of hardware for a one-time fee, and ensures its integrity and accessibility. |
Aura is a Convex fork that serves the Balancer DEX. By aggregating governance power, Aura drives efficiency to BAL LPs. |
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FTX co-founder Gary Wang and Alameda Research ex-CEO Caroline Ellison are now cooperating with authorities after pleading guilty to fraud |
Sen. Pat Toomey formally introduced his stablecoin bill to the Senate floor as the 117th Congress wraps up work |
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The insights, views and outlooks presented in the report are not to be taken as financial advice. Blockworks Research analysts are not registered broker/dealers or financial advisors. Blockworks Research analysts may hold assets mentioned in this report, further outlined in the Firm's Financial Disclosures. |
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