In a Shocking Revelation, Ex-Girlfriend Accuses FTX Founder of Fraud
Caroline Ellison, the former girlfriend of FTX founder Sam Bankman-Fried, has made serious allegations against the billionaire entrepreneur. Ellison claims that Bankman-Fried coerced her into engaging in illicit activities and committing fraud against FTX customers.
SBF Allegedly Directed Fraudulent Activities
Ellison, who was in a relationship with Bankman-Fried for a significant period, confessed in court to participating in fraudulent activities at Alameda under his direction. She stated that Bankman-Fried “made the systems” that led to approximately $14 billion being diverted from FTX.
“He directed me to commit these crimes. Alameda took several billions of dollars from FTX customers and used it for investments. I sent balance sheets that made Alameda look less risky than it was.”
The Relationship Between Ellison and SBF
Ellison and Bankman-Fried met at Jane Street Capital, where he convinced her to leave the investment firm and join his cryptocurrency ventures. After the collapse of FTX in November 2022, their communication reportedly dwindled.
The connection between Ellison and Bankman-Fried is crucial to the fraud allegations against him. While she led the team at Alameda, he was in charge of the crypto exchange. The accusations claim that Bankman-Fried instructed Alameda to access FTX user funds without customer approval for personal expenses like real estate and political campaign contributions.
FTX ‘Fixer’ Provided Loans to Wang
During cross-examination, Gary Wang admitted to receiving loans from Alameda Research for FTX ventures and a house purchase in the Bahamas. Evidence included a promissory note for a $35 million loan at a 2.21% interest rate.
Bankman-Fried’s defense aims to probe Wang further for evidence of legal involvement in Alameda Research’s loan structuring, despite previous objections from the judge.
Guilty Pleas and Uncertain Testimony
Ellison and Wang, both former insiders at FTX and Alameda, have pleaded guilty to secure deals with U.S. authorities in exchange for their testimony. It remains uncertain whether Bankman-Fried will testify as part of his defense.
Hot Take: Ex-Girlfriend Accuses FTX Founder of Directing Fraudulent Activities
In a shocking twist, Caroline Ellison, the ex-girlfriend of FTX founder Sam Bankman-Fried, has accused him of orchestrating fraudulent activities at Alameda. Ellison alleges that Bankman-Fried instructed her to commit crimes and divert billions of dollars from FTX customers for investments. These allegations, combined with the revelation that Bankman-Fried’s alleged “fixer” provided loans to another insider, Gary Wang, raise serious questions about the integrity of FTX’s operations. As the trial continues, it remains to be seen how these accusations will impact Bankman-Fried’s defense and the future of FTX.
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