Caroline Ellison accused Sam Bankman-Fried of misuse of FTX user funds at the hearing. Reports suggest that the former CEO of Alameda Research and SBF were largely out of touch following the collapse of FTX in November 2022.
Ex-girlfriend put all the blame on FTX ex-CEO SBF!
Today was the defense of Caroline Ellison, the business partner and girlfriend of former FTX CEO Sam Bankman-Fried. Sam Bankman-Fried (SBF) watched from the defense table as Ellison testified in the criminal trial. According to the latest news from the courtroom, Ellison admitted to committing fraud while working under Bankman-Fried’s direction in Alameda. The former Alameda CEO placed the blame for the misuse of FTX user funds squarely on SBF. He also claimed that Alameda “established systems” that led to him receiving nearly $14 billion from the stock market.
According to reports, Ellison said, “Alameda received several billion dollars from FTX customers. He used this for investments. “I sent out balance sheets that made Alameda look less risky than it was.” said. Ellison met Bankman-Fried through their work at Jane Street Capital. SBF convinced him to leave the investment firm and join its crypto-focused efforts. Reports suggest that the two were largely out of touch following the collapse of FTX in November 2022.
Sam Bankman-Fried included this photo with Caroline Ellison in a document he sent me, noting that she “was wicked smart,” but “deeply insecure.” CAROLINE TESTIFIES AGAINST SBF IN COURT THIS WEEK. pic.twitter.com/n9WXyBXfd1
— Tiffany Fong (@TiffanyFong_) October 10, 2023
Is the mystery surrounding the collapsed crypto exchange being clarified?
Caroline Ellison’s relationship with SBF is one of the issues at the center of the allegations she is facing, as the former CEO was in charge of the crypto exchange while running the team in Alameda. Bankman-Fried’s fraud charges are based on the fact that he directed Alameda to access FTX user funds without customers’ consent. It also includes allegations that he used these funds to purchase property and donate to political campaigns.
cryptokoin.comAs you follow from , FTX co-founder and former chief technology officer Gary Wang took the stand as one of prosecutors’ first witnesses on Oct. 5, alleging wrongdoing alongside Ellison as well as former engineering director Nishad Singh. Under cross-examination of Wang, SBF’s lawyers tried to shift some of the blame for the stock market crash to Ellison. Accordingly, they questioned the former CTO about his role. In opening statements, the defense claimed that Bankman-Fried ignored his request to protect the Alameda investments.
By the way, it should be noted that Ellison and Wang made an agreement with US authorities to testify. The two were some of the first FTX and Alameda employees to plead guilty as part of the agreement. It’s unclear whether Bankman-Fried will take the stand as part of his defense strategy. The former Alameda Research CEO’s testimony marked the fifth day of the criminal trial. In this case, SBF faces 7 fraud-related charges. Bankman-Fried, who has pleaded not guilty to all charges, is expected to appear at a second sentencing hearing that will begin in March 2024.
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