FTX founder Sam Bankman-Fried contemplated shutting down Alameda Research amid allegations of misusing customer funds. Bankman-Fried stated that the negative publicity around Alameda's relationship with FTX was too burdensome. He also accused competitors of spreading false information to distract from their own issues. Alameda's reputation was damaged by speculations of engaging in trading not in the best interests of FTX's clients. Alameda's co-founder, Caroline Ellison, testified about deliberate balance sheet manipulations and misuse of FTX's customer accounts.