The trial of the previous CEO of the defunct crypto alternate FTX, Sam Bankman-Fried (SBF), resumed on October 10. As expected, the prosecution referred to as Alameda Analysis’s ex-CEO and SBF’s ex-girlfriend, Caroline Ellison, to testify in opposition to the defendant.   

Ellison Does Extra Harm To Sam Bankman-Fried Protection

In keeping with a thread on the X (previously Twitter) platform by Internal Metropolis Press, which was current on the trial, Ellison confirmed what was already often called she said that she and the defendant dated for a few years with their on-and-off relationship, starting in the summertime of 2020. 

Nonetheless, any affection or emotions that she could have had for the defendant didn’t appear to hinder her as she lived as much as the hype because the prosecution’s star witness, offering key insights into how Sam Bankman-Fried allegedly misappropriated FTX’s clients’ funds by way of Alameda which she headed earlier than its collapse. 

Throughout her testimony, she admitted that she had dedicated fraud alongside the defendant. Particularly, she said that Sam Bankman-Fried directed her to commit these crimes. As to her involvement, she collaborated Wang’s testimony whereas stating Alameda (and her, by extension) took “a number of billions of {dollars}” from FTX clients and used these monies for investments. 

In the meantime, Ellison confirmed that Sam Bankman-Fried was the one who arrange the techniques and directed the buying and selling agency to take the cash. In addition to utilizing FTX’s clients’ funds for investments, Alameda additionally took round $14 million to repay its lenders. She additionally manipulated Alameda’s steadiness sheets, making the agency look dangerous to potential lenders. 

FTT Token continues downtrend following Ellison's testimony | Supply: FTTUSDT on Tradingview.com

Prosecution Makes use of Ellison To Drive Residence Main Allegations

In its opening assertion, the Prosecution alleged that Sam Bankman-Fried diverted clients’ fiat deposits to a checking account linked to Alameda, which Ellison confirmed on the stand. She said that FTX acquired cash into Alameda’s financial institution accounts between 2021 and 2022. The entire sum deposited was between 10-20 billion {dollars}. 

Alameda used a few of these deposits to repay loans, investments, and stablecoin conversions like USDC. In keeping with her, this summed as much as about $2 billion. It didn’t cease there, although, because the buying and selling agency used the opposite cash for different Alameda-related functions.

Sam Bankman-Fried and his legal professionals have, at completely different instances, tried to put a basis that SBF wasn’t in charge of Alameda and didn’t know what was happening on the buying and selling agency after he stepped down because the CEO.

Nonetheless, Ellison rebutted this on the stand as she said that issues didn’t change a lot, even when she turned the co-CEO alongside Sam Trabucco, as she checked every thing with Sam Bankman-Fried and straight reported to him. He additionally had the ability to fireside her. 

Wire fraud on lenders to Alameda Analysis and conspiracy to commit wire fraud on lenders to Alameda Analysis is a part of the seven charges brought against SBF. As such, Ellison’s testimony is deemed essential (as somebody with first-hand data) within the prosecution’s bid to show these crimes past cheap doubt. 

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