SBF's ex-girlfriend exposes again: Forged seven balance sheets, SBF considers his explosive hairstyle a career treasure

Former CEO of Alameda, Caroline Ellison, revealed more information during her second court appearance. To prevent Genesis, the lender of Alameda, from being alarmed by the financial difficulties, Caroline Ellison created seven different balance sheets. SBF even suggested at one point to include the SRM tokens held by Alameda employees in the balance sheet.

Genesis Debt Collection Leads to FTX Bankruptcy

SBF attributes Alameda's declining profitability to Caroline Ellison, who admits that better hedging strategies could have helped Alameda weather the crypto winter, but the main cause of bankruptcy was the substantial loans taken by Alameda and the extensive borrowing of user funds from FTX.

Caroline Ellison revealed that lending institution Genesis began demanding repayment from Alameda since June, and at SBF's request, she diverted user funds from FTX to partially repay the loans.

By September 2022, Alameda's debt on FTX had soared to $13.7 billion.

Forgery of Seven Balance Sheets, Inclusion of Employee Assets

Also at SBF's request, in order to prevent Genesis from being alarmed by Alameda's financial distress, Caroline Ellison created seven different balance sheets.

SBF even suggested including SRM tokens held by Alameda employees in the balance sheet.

However, the forged balance sheets failed to convince anyone, especially with large holdings of FTT and Solana coins, coupled with SBF's delayed response to CoinDesk's reports, intensifying FUD and ultimately leading to a massive run on the exchange, resulting in FTX declaring bankruptcy.

Alameda's balance sheet leaked, holding 60% of total FTT circulation, raising concerns of insolvency in the face of major fluctuations

SBF's Explosive Hair is a Career Treasure

Prosecutors in court once presented a photo of SBF and asked Caroline Ellison to describe him.

She recalled that SBF did not focus on appearance; he looked unkempt and rarely cut his hair for a reason, as the media and investors often perceived SBF's appearance as that of a typical Silicon Valley nerd, like an entrepreneur who only knows how to code and doesn't care about designer labels or sports cars.

And this is the image SBF wanted to project, as Caroline Ellison stated:

SBF said he earns more bonuses because of his hairstyle, which is very valuable to his career. This also helps FTX's image, which is why we changed FTX's company cars from luxury cars to lower-priced brands like TOYOTA and HONDA.