Disgraced FTX Founder Sam Bankman-Fried’s Trial Resumes with Testimony from Ex-Colleague
On October 10, the trial of Sam Bankman-Fried, the disgraced founder of FTX, will continue with testimony from Caroline Ellison, his former colleague and ex. Ellison, who served as CEO of Alameda Research, a sister firm to FTX, is expected to provide crucial evidence regarding the alleged misappropriation of $8 billion in customer funds by Alameda.
Ellison and former FTX CTO Gary Wang pleaded guilty in December and have since cooperated with the U.S. attorney’s office. During her testimony, Ellison is likely to detail the events from 2019 to 2022, during which FTX purportedly allowed Alameda to borrow massive amounts without collateral or negative balances.
Previously, Ellison confessed that she and Bankman-Fried manipulated financial statements to conceal borrowing activity between Alameda and FTX executives. Bankman-Fried faces multiple federal charges, including fraud and money laundering.
Hot Take: Key Testimony Expected from Former Colleague in Sam Bankman-Fried’s Trial
The trial of Sam Bankman-Fried, the founder of FTX, continues with Caroline Ellison’s testimony. As a star witness who held the position of CEO at Alameda Research, Ellison’s account is expected to shed light on the alleged misappropriation of $8 billion in customer funds by Alameda. This trial has captivated observers who anticipate a detailed narrative of events from 2019 to 2022, exposing how Alameda received billion-dollar loans without posting collateral. Ellison’s previous admission of altering financial statements suggests a compelling testimony that could further implicate Bankman-Fried in fraudulent activities. As this high-profile trial unfolds, it will be interesting to see how the case against Bankman-Fried develops and whether his plea of not guilty will stand.
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