Caroline Ellison, the former CEO of Alameda Research, admitted in court that she and the former CEO of FTX, Sam Bankman-Fried, signed off on false financial statements for lenders, knowing that it was illegal.

Ellison also said that FTX provided Alameda with access to a borrowing facility from 2019 to 2022 and that FTX executives borrowed funds from Alameda and used FTX funds to repay “loans worth several billion dollars.”

Most customers of FTX would have expected their funds to be used for this purpose, Ellison said. She apologized for her actions and admitted that she knew they were wrong.