Shocking revelations that shattered beliefs on the second day of SBF's ex-girlfriend's court appearance.

On the second day of Alameda's former CEO Caroline Ellison's testimony, the revealed insider information was even more shocking than the first day. The court's transcript of the questioning process, step by step, exposed how FTX, the fastest-growing enterprise in history, fell into darkness. In this ongoing conversation, we hear Sam requesting to create seven balance sheets to cover Alameda's debt, FTX hoping to finance from the Saudi royal family to make up for FTX's losses, Sam even wanting to sell and control the market once Bitcoin exceeds $20,000, and he hopes regulatory agencies will crack down on Binance and so on.

BlockBeats has compiled Inner City Press's live text coverage. Let's feel the shock that Caroline brought us on the second day of her court appearance together. (Click here to review Caroline's first day statement "What did the ex-girlfriend of SBF reveal in court?")

Question: Good morning, Ms. Caroline. What happened to Alameda's trading position?

Caroline: The token price has dropped.

Question: What impact did the decline of the cryptocurrency market have on Alameda's loans?

Caroline: The lender is reclaiming the loan.

Question: Does Alameda need to repay?

Caroline: Yes, these are loans without a fixed term.

答：我是通过一位同行的介绍得知的。

Question: How did you learn about this matter? Answer: I learned about it through a colleague's introduction.

Caroline: via Slack and Telegram.

Question: Was the defendant also present in these Telegram chats?

Caroline: Yes.

Question: Can you please read the Telegram chat record from June 13th, 2022 and explain what "dollar refund" means?

Caroline: Return our USD loan to this cryptocurrency address.

Question: What is an OT loan?

Caroline: A loan without a fixed term. Genesis wants to recover $400 million. I am very anxious. We have to get it from FTX.

Question: Where does the money taken by Alameda from FTX come from?

Caroline: Customer.

Question: So, what's on your mind?

SBF's lawyer: objection! Judge: overruled.

Caroline: I am worried that clients withdrawing from FTX will be exposed and people will be hurt.

Question: Did you calculate the balance of Aladema and did you share this information with the defendant?

Caroline: Yes, whenever he requests it, I provide him with the updated balance sheet. He is my boss, the owner of Alameda.

Question: What did he tell you to do?

Caroline: He instructed me to repay the loan.

Question: Do you understand what he wants you to do?

Caroline: Use Alameda's credit line on FTX, which means using customer funds. He knows this is the only way to repay. Sam asked us...

答：我们是加密行业从业者。

Question: Who are we?

Answer: We are professionals in the encryption industry.

Caroline: Sam said not to send the balance sheet to Genesis. We borrowed 10 billion dollars from FTX and loaned 5 billion dollars to our own executives and affiliated entities. We believe that Genesis may spread this information.

Question: What did the defendant tell you to do?

Caroline: He told me he wanted to present the information in a different way. He wanted me to conceal some things on our balance sheet. So I prepared 7 different balance sheets. I don't want to lie, but... I presented these alternatives to Sam and let him decide. This is the Excel file from June 19, 2022 that contains 7 alternative options (shown to the jury).

Question: How do you feel about the 9.9 billion US dollars borrowed from FTX customers on Alameda's balance sheet?

SBF's lawyer: objection! Judge: overruled.

Caroline: I don't feel well. If people find out, they will all try to withdraw their investments from FTX.

Question: What happens if all FTX customers attempt to withdraw funds?

Caroline: We don't have that much money.

Question: Which one of the 7 alternative solutions did Sam choose?

Caroline: Chose the seventh one, without disclosing the 9.9 billion US dollars owed to FTX customers.

Caroline: This is the message I sent to Genesis' Matt Ballensweig, which includes my Google document link. Genesis' funds were recalled by the retail loan platform, so they asked us for $500 million.

Question: What did the defendant tell you about his conversation with Matt Ballensweig from Genesis company regarding him (SBF)?

Caroline: Genesis may go bankrupt, so we should send it to them.

Question: Do you think it is dishonest when you send this balance sheet to Genesis?

Caroline: Yes.

SBF's lawyer: objection! Judge: overruled.

Caroline: (again) Yes, I think that's the case.

Question: What did the defendant say in the tweet published on June 27, 2022?

Caroline: Supporting customer assets should always be the top priority.

Question: Do you think this tweet is misleading?

Caroline: Yes.

Question: Are there any other lending institutions besides Genesis?

Caroline: BlockFi. There are other institutional leaders as well, and I will send them the balance sheet.

Caroline: By September 2022, Alameda has borrowed $13 billion from FTX clients.

Question: How did it rise so much?

Caroline: We use it to repay loans and as collateral for other investments.

Question: What are these?

Caroline: Notes from the conversation with Sam. I wrote that if Bitcoin exceeds $20,000, continue to sell Bitcoin.

Question: You wrote that FTX may raise funds. What does this mean?

Caroline: Raise funds by selling equity to obtain more capital. The goal is to attract investors like Saudi Crown Prince Mohammed bin Salman (MBS).

Caroline：Signal。

Caroline: I try to keep a low profile. But after Sam Trabucco left, I went on Twitter. Sam said Alameda must have someone there (to handle public relations).

Question: How did Sam talk about Twitter's strategy?

Caroline: He said that attracting customers and investors is very important.

Caroline: Sam said that driving a Toyota Corolla would be more beneficial to his public image, so I also drive a Honda.

Question: Why did you make misleading statements to the press?

Caroline: What I said is similar to what Sam said in the past, but he is concerned about it. He is worried that the Commodity Futures Trading Commission (CFTC) in the United States is trying to obtain futures licenses.

Question: Have you discussed shutting down Alameda with Gary and Nishad?

Caroline: Yes, but we decided not to do anything.

Question: What is this piece of evidence?

Caroline: Alameda provides loans to Sam, Ryan Salame, Gary, and Nishad.

Question: What is the total number?

Question: How much money did Ryan Salame take?

Question: This loan is for Sam, what is GAP?

Question: Let's talk about the Proof 1987 (presumably referring to the data leak incident that caused the FTX crash, initially reported by Coindesk). Where were you when the leak occurred?

Caroline: On vacation in Japan, I have decided not to make any comments.Question: What does the leaked balance sheet show?

Caroline: It underestimated some things, but still showed risks about the risk of FTT.

Caroline: FTT is falling, people are starting to withdraw from FTX.

Question: Where were you on November 6th?

Caroline: Works in the Hong Kong office.

Question: How did you communicate with the defendant?

Caroline：Signal。

To be continued

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