Caroline Ellison, CEO of Alameda research, a once-obscure character, has suddenly surfaced as a crucial factor behind FTX’s seeming success and subsequent unexpected downfall. In recent weeks, the exchange, whose token is FTT, has had collapses of up to 85%, forcing it to declare bankruptcy.
Furthermore, a trove of information concerning the inner workings of Sam Bankman-bitcoin Fried’s exchange has surfaced. In reality, Ellison appears to have been the CEO of Alameda Research, the trading firm through which Bankman-Fried exchanged cryptographic tokens in concert with FTX execution. Caroline Ellison became the target of internet conjecture after it was revealed that FTX borrowed money from client accounts to finance betting through Alameda.
Caroline Ellison in the aftermath of FTX’s demise: a plunge into the unknown
In remarks made before the FTX collapse, former Alameda Research CEO Caroline Ellison said that the atmosphere she was thrust into was extraordinarily fast-paced:
“Someone suggests something, and then an hour later, it has already happened.”
Furthermore, Ellison states she took a genuine blind leap into the unknown when she quit her Wall Street position to join her former colleague, Sam Bankman-Fried, at Alameda Research in the fast-paced, practically immediate atmosphere. Ellison departed Jane Street Capital in 2018 to join Alameda Research; the cryptocurrency exchange startup launched the year before by Bankman-Fried.
CEO of Alameda research noted in an episode of the 2020 FTX podcast, first published by the Wall Street Journal that the climate at the brave young firm was considerably different from her image of working on Wall Street:
“It was like the process of doing things, only someone suggests something, and then someone else codes it and releases it within the hour.”
Caroline Ellison has been sacked from the insolvent cryptocurrency exchange Alameda after nearly four years, more than one of which she was CEO, according to the Wall Street Journal.
Ellison and SBF: “effective altruism” was an idea at the birth of Alameda. What it is and how it functions
As previously reported, Bankman-FTX Fried’s group, which included Alameda, failed to acquire emergency funding and declared bankruptcy in early November. According to a Bloomberg story published on Sunday, the Bitcoin company owes $3.1 billion to its 50 largest unsecured creditors.
Although the identities and addresses of the creditors have yet to be released, Bloomberg stated that the top unsecured creditor owes more than $226 million, and the remaining customers who make up the 50 highest claims each owe at least $21 million.
The current situation is dire, but how did it become this way? What motivated the establishment of Alameda, according to CEO of Alameda research and SBF? Returning to Ellison, we know that in an episode of the FTX podcast, the young trader described her decision to support Bankman-Fried’s efforts and their shared sense of “effective altruism.”
As a result, the Future Fund was established, a mechanism for giving grants to non-profits and investments in social impact firms. Since college, Ellison and Bankman-Fried have been researching effective altruism. It is a philosophical movement that uses mathematics to explain how individuals might best spend their time, money, and resources to serve others.
Indeed, it appears Ellison later joined Stanford’s Effective Altruism Club. According to the WSJ, critics of the practice claim that it fosters excessive risk-taking. As a result, according to Ellison’s own statements, the following could be behind, among other things, the implosion of Alameda and the collapse of FTX:
“The general idea of effective altruism is to try to do the best you can and use expected value to measure that good.”
In addition, after describing effective altruism in the 2020 podcast episode, Ellison was questioned about her intentions to save money for future retirement:
“I’m not thinking about it too much right now.” It makes no sense for me to be concerned about money. In the future, I’ll probably make more money.”
But who exactly is Caroline Ellison? And what part did she play in FTX’s demise?
Ellison’s virtual presence has been declining since the demise of FTX. CEO of Alameda’s research LinkedIn profile, online images, and contact information have all vanished in the last two weeks. As a result, journalists and investors are eager to learn more about her.
Furthermore, interest has grown because CoinDesk claimed via unnamed sources that the young woman was in a relationship with SBF. However, for the time being, the most trustworthy information on Ellison comes from her Tumblr account and the few media interviews she has provided over the years.
What is known about her online shows that she is an exceptionally clever and well-educated individual, as well as a mathematical genius and a voracious reader. On Tumblr, she also constantly hypothesizes about gender roles and cultural and societal shifts.
Ellison remained primarily out of the spotlight while FTX rose to prominence as an exchange. According to FTX staff, Ellison appears to have preferred to stay behind the scenes. Many media sites rushed to offer various facts on Caroline Ellison’s suspected involvement only after the collapse of FTX and the effect on the whole crypto market.
As expected, CoinDesk revealed through unnamed sources that CEO of Alameda research was part of a crew of ten FTX and Alameda personnel living together in the Bahamas.
What does the future hold for Ellison, SBF, and the FTX empire?
Furthermore, it appears that Ellison had a romantic involvement with SBF. It is now unknown, as with so many other things, what her part was in the collapse of FTX and what will happen to the young woman in the future.
Her physical whereabouts appear to be unknown, in addition to her accounts’ decreasing online visibility. However, Ellison’s most recent internet posting was on November 6, when she tweeted in support of Alameda’s financial results, writing:
“A few notes on the balance sheet info that has been circulating recently: that specific balance sheet is for a subset of our corporate entities, and we have > $10b of assets that aren’t reflected there.”