Alameda's former CEO Caroline's diary exposed: FTX's collapse felt like a relief, feeling happy

Author: Jim

The Wall Street Journal accessed Google documents from former Alameda Research CEO Caroline Ellison through informed sources, which recorded many of her feelings and thoughts. She seemed to be tormented by events such as taking over as CEO and breaking up with SBF, to the extent that when FTX collapsed, she even felt happy.

Caroline Ellison and SBF's Relationship

After graduating from Stanford University, Caroline joined the quantitative firm Jane Street and met SBF.

SBF founded Alameda after leaving Jane Street in 2017 and recruited Caroline.

In October 2021, SBF claimed he would focus on FTX operations and decided to step down as CEO of Alameda Research, handing the role over to Sam Trabucco and Caroline Ellison as co-CEOs.

Sam Trabucco announced his resignation in August 2022, transitioning to an advisory role, leaving Caroline to shoulder the responsibilities alone.

Disliking the CEO Role and Being Overwhelmed by Work

In February 2022, Caroline wrote in a Google document:

I have always felt very unhappy with my job, feeling overwhelmed by work. At the end of a long day, I can't wait to go home, turn off my phone, have a drink, and get away from it all.

In another document, she mentioned that she felt she was not suited to manage Alameda and was not good at making decisive decisions as a leader.

Her romantic relationship with SBF seemed to complicate work, and she sometimes worried that SBF thought she was not good enough:

When SBF is around, I unconsciously shrink back, becoming quieter and more submissive to others.

Losing Passion for Alameda After Breaking Up with SBF

In an April 2022 document addressed to SBF, Caroline stated that breaking up with SBF greatly diminished her enthusiasm for Alameda, and the close ties between her time at Alameda and SBF made her feel very painful.

During this time, Caroline refused to contact SBF, saying:

Deliberately making it hard for you to reach me is the only way I feel I can regain power.

After the breakup, she seemed to grow weary of SBF's celebrity status, pointing out that staying at Alameda meant she had to work alongside SBF and constantly received news about how great SBF was.

FTX Collapse, Caroline: It Feels Great

Previously, the CFTC lawsuit mentioned that SBF considered shutting down Alameda last September and invested over $400 million in another trading firm, Modulo Capital.

In response, insiders indicated that Caroline expressed dissatisfaction with this move in her diary, feeling jealous of Modulo and feeling excluded.

When FTX collapsed, Caroline and SBF's communications were also cited in court records, with Caroline stating:

I was getting more and more scared before this day came, which put a lot of pressure on me. Now that it has really happened, it feels great to end it all.

Previous reports indicated that both Gary Wang, co-founder and CTO of FTX, and Caroline Ellison had pleaded guilty, potentially facing sentences of up to 110 years and 50 years, respectively.

Former engineering director Nishad Singh, although not facing substantial charges, had received a $543 million loan from Alameda Research.

The three executives have all turned into cooperating witnesses, and SBF's criminal trial is set to officially begin in October. Insiders noted that the trial will primarily focus on the communication records of SBF and the other three executives on Signal.