FTX Founder’s Ex-Girlfriend Claims Manipulation of Bitcoin Prices
During the trial of Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, his ex-girlfriend and former head of Alameda Research, Caroline Ellison, made startling claims about a possible plot to manipulate Bitcoin prices. Ellison mentioned a note instructing to “Keep selling BTC if it’s over $20K,” suggesting an intentional effort to keep the cryptocurrency’s value below $20,000. Such alleged interventions could significantly impact the dynamics of the digital currency market.
FTX Borrowed $13 Billion from Clients
Ellison also revealed concerns about financial practices at FTX. She disclosed that under Bankman-Fried’s leadership, Alameda Research borrowed $13 billion from FTX clients by September 2022. These funds were used to clear debts and serve as collateral for various investments, raising questions about financial transparency.
Potential Troubles with Genesis
Additionally, Ellison spoke about a potentially troubling incident involving retail lending platform Genesis. According to her statements, when facing insolvency, Genesis requested $500 million from FTX. Despite reservations about the transaction’s sincerity, Bankman-Fried allegedly instructed Ellison to transfer the money to Genesis.
Judge Rejects Bankman-Fried’s Evidence Plea
In a recent development, Judge Lewis A. Kaplan denied a plea from Bankman-Fried’s legal team to present evidence related to the role of counsel in formulating loans given by Alameda Research during the cross-examination of Gary Wang, the former FTX chief technology officer.
Hot Take: Allegations of Manipulation Shake Crypto Industry
The trial of Sam Bankman-Fried has brought forward shocking allegations of manipulation in the cryptocurrency industry. Caroline Ellison, Bankman-Fried’s ex-girlfriend and former head of Alameda Research, testified about a possible plot to manipulate Bitcoin prices by keeping its value below $20,000. She also raised concerns about financial transparency and revealed a questionable transaction involving Genesis. The defense’s request to present evidence was denied by the judge. These allegations have significant implications for the crypto market and its participants.
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