FTX founder Sam Bankman-Fried continued to deceive the public while FTX’s liquidity and assets were disappearing, according to former Alameda Research CEO Caroline Ellison’s testimony in the United States v Bankman-Fried trial. Ellison revealed that FTT, the token associated with FTX, was not supposed to fall below $1, and discussions about it were limited to an inner circle that included herself, Gary Wang (CTO of Alameda/FTX), Nishan Singh (chief engineer of FTX/Alameda), and Bankman-Fried. Ellison also cast doubt on Alameda’s role as a market maker for SBF’s exchange, stating that the hedge fund only needed a credit line of around $200 million but was given a $65 billion line of credit and unlimited withdrawals from FTX customer balances. Alameda allegedly owed $3 billion on FTX and over $9 billion to lenders in 2022. Witnesses testified that Alameda used customer funds for arbitrage trading on rival exchanges like Binance. BlockFi CEO Zac Prince and Nishad Singh are expected to testify in the trial as well. The trial will determine whether a $100 million investment in AI firm Anthropic should be included or excluded from the case.
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