Caroline Ellison, the former CEO of Alameda Research, told a New York federal court that she intentionally misled lenders about the amount Alameda borrowed from the failed FTX and knew her actions were wrong, according to Bloomberg. “From 2019 to 2022, I know Alameda has access to lending facilities on FTX.com, the cryptocurrency exchange run by Mr. platform. This arrangement allows Alameda to obtain an unlimited line of credit without posting collateral, with no negative balances, and without being subject to margin calls from FTX.com’s liquidation agreement.” Ellison said she and former FTX CEO Sam Bankman -Fried (SBF) had agreed to cover up the arrangement by fabricating false financial statements, and she knew the negative balance in the Alameda account indicated that the company was borrowing money from FTX clients.