Caroline Ellison, the former CEO of Sam Bankman-Fried
(SBF)’s hedge fund, Alameda Research, has testified that the crypto mogul
directed a scheme to defraud customers of his cryptocurrency exchange, FTX.
Ellison’s allegations painted a picture of ambition, deception, and misuse of
customer funds by SBF.
According to a report by Reuters, the former executive
provided a detailed account of how an estimated $10 billion of FTX customer
funds were allegedly misappropriated to repay debts and make investments. This
move was allegedly orchestrated by SBF, who had set up systems
allowing Alameda Research to access customers’ funds.
The trial centered on the prosecution’s assertion that
Alameda Research misappropriated billions of dollars from FTX’s customers,
leading to its collapse in November 2022. Ellison, who has already pled guilty
to fraud and conspiracy charges, has emerged as a central figure, providing
firsthand accounts of her involvement in these activities under the instructions of SBF.
However, SBF maintains his innocence, arguing that any
financial discrepancies were a result of errors and not deliberate attempts to
steal funds. Moreover, Ellison disclosed that she had no equity stake in
Alameda Research despite expressing interest in it, according to a report by
Coindesk.
Ellison’s testimony highlighted SBF’s
inclination toward borrowing substantial sums of money for Alameda Research’s
operations. She claimed that SBF directed her and others to secure
huge amount of loans. This intense borrowing strategy played a pivotal role in Alameda Research’s
financial dealings.
Confessions of a Collaborative Crime
The witness also highlighted Alameda Research’s substantial line of
credit at FTX, a move orchestrated by SBF. The complexities of
using FTX’s native token, FTT, as collateral for loans were revealed in detail during the hearing.
Ellison’s testimony commenced with a moment of suspense when
she had to search the courtroom for nearly 30 seconds before identifying SBF, CNBC reported. The tension was noticeable as she
eventually pointed out the defendant, describing him as sitting “over
there and wearing a suit.”
In response to questions from the Assistant U.S. Attorney
Danielle Sassoon, Ellison openly admitted to her involvement in committing
various crimes, including fraud, conspiracy to commit fraud, and money laundering. Ellison met SBF during her internship at Jane Street, and their journey
together continued as they worked at Alameda Research.
Caroline Ellison, the former CEO of Sam Bankman-Fried
(SBF)’s hedge fund, Alameda Research, has testified that the crypto mogul
directed a scheme to defraud customers of his cryptocurrency exchange, FTX.
Ellison’s allegations painted a picture of ambition, deception, and misuse of
customer funds by SBF.
According to a report by Reuters, the former executive
provided a detailed account of how an estimated $10 billion of FTX customer
funds were allegedly misappropriated to repay debts and make investments. This
move was allegedly orchestrated by SBF, who had set up systems
allowing Alameda Research to access customers’ funds.
The trial centered on the prosecution’s assertion that
Alameda Research misappropriated billions of dollars from FTX’s customers,
leading to its collapse in November 2022. Ellison, who has already pled guilty
to fraud and conspiracy charges, has emerged as a central figure, providing
firsthand accounts of her involvement in these activities under the instructions of SBF.
However, SBF maintains his innocence, arguing that any
financial discrepancies were a result of errors and not deliberate attempts to
steal funds. Moreover, Ellison disclosed that she had no equity stake in
Alameda Research despite expressing interest in it, according to a report by
Coindesk.
Ellison’s testimony highlighted SBF’s
inclination toward borrowing substantial sums of money for Alameda Research’s
operations. She claimed that SBF directed her and others to secure
huge amount of loans. This intense borrowing strategy played a pivotal role in Alameda Research’s
financial dealings.
Confessions of a Collaborative Crime
The witness also highlighted Alameda Research’s substantial line of
credit at FTX, a move orchestrated by SBF. The complexities of
using FTX’s native token, FTT, as collateral for loans were revealed in detail during the hearing.
Ellison’s testimony commenced with a moment of suspense when
she had to search the courtroom for nearly 30 seconds before identifying SBF, CNBC reported. The tension was noticeable as she
eventually pointed out the defendant, describing him as sitting “over
there and wearing a suit.”
In response to questions from the Assistant U.S. Attorney
Danielle Sassoon, Ellison openly admitted to her involvement in committing
various crimes, including fraud, conspiracy to commit fraud, and money laundering. Ellison met SBF during her internship at Jane Street, and their journey
together continued as they worked at Alameda Research.