Ex-Alameda CEO was trying to prevent ‘AI disaster’ — former FTX employee

In a letter to Judge Lewis A. Kaplan, Leila Clark—a former FTX employee and friend of ex-Alameda Research CEO Caroline Ellison—claimed the convicted Alameda executive was trying to use her money to prevent an "AI disaster."

The letter characterized Ellison as someone deeply concerned about the potential for artificial intelligence to take over and cause the extinction of humanity.

Page 1 of Leila Clark’s letter. Source: Court Listener

According to Clark, this perceived existential threat drove Ellison to prioritize making as much money as possible to spend on initiatives to counter the harmful effects of artificial intelligence. The former FTX employee also speculated that Ellison's fears about artificial intelligence were the primary driver behind her long work hours:

"She dedicated her life to work in a way I found bewildering. When I met Caroline again in Hong Kong, I saw her infrequently. She was in the office all the time—fourteen hours a day, seven days a week."

The former FTX employee did not outline specific details about Ellison's plan to combat the perceived threat of AI. However, Clark asserted that even these fears did not justify fraud.

Related: Caroline Ellison asks for time served, citing cooperation with US gov’t

Was Ellison pressured into remaining at Alameda Research?

Clark's letter of support also alluded to Ellison's unhappiness following the Alameda CEO's breakup with FTX CEO Sam Bankman-Fried. Ellison was described by Clark as having felt an extraordinary obligation to "somehow fund Sam's spending and empire-building" despite her unhappiness.

In 2023, Ellison testified that she wanted to step down as CEO of Alameda Research months before the implosion of FTX. According to Ellison's testimony, Bankman-Fried persuaded her to remain as the head of the trading firm to prevent a collapse in investor sentiment and an ensuing run on Alameda.

Ellison's testimony confirms troubling practices at FTX

During the testimony, Ellison also revealed that there were seven alternative balance sheets meant to obscure Alameda's exposure to FTX. Ellison alleged that the fake balance sheets were given to Genesis executives to hide a $10 billion liability on FTX's balance sheet owed to Alameda Research.

The former Alameda CEO likewise confirmed to prosecutors that Alameda Research always had access to FTX client funds.

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