The Testimony of Caroline Ellison
Caroline Ellison, the key witness in the government’s case against Sam Bankman-Fried, became emotional while recounting the final hours of the crypto empire she helped build during her testimony. Over two days and more than nine hours on the stand, Ellison shared some of her personal to-do lists that she kept on Google Docs. One list titled “Things Sam is freaking out about” revealed Bankman-Fried’s concerns, including cracking down on Binance to improve FTX market share and buying Snapchat’s parent business.
Another item on the list was raising funds from Mohammed bin Salman, the Saudi Arabian crown prince, and trading Japanese government bonds. The intention behind these actions was to enhance FTX’s position in the market.
Targeting Binance
Bankman-Fried wanted to subject Binance to more regulatory oversight as part of FTX’s strategy. This move aimed to divert regulators’ attention away from FTX during a time when Binance was close to acquiring FTX.
Fraudulently Getting Loans
During her testimony, Ellison detailed how Bankman-Fried instructed her to conceal billions in loans to Alameda Research’s balance sheets. She manipulated numbers and created false transactions to make the loans appear legitimate before meeting with Genesis, a cryptocurrency lender. Ellison hoped to provide a convincing explanation for Alameda’s balance sheet discrepancies.
Feeling of Remorse
Ellison expressed mixed emotions during her trial, describing it as both the worst week of her life and the best mood she had been in for a year. She felt overwhelming relief because she no longer had to lie but also felt indescribably bad for the victims “we betrayed.”
Hot Take: Caroline Ellison’s Testimony Sheds Light on Sam Bankman-Fried’s Actions
Caroline Ellison’s testimony in the trial against Sam Bankman-Fried provides valuable insights into his intentions and strategies. The to-do lists she shared reveal Bankman-Fried’s fixation on improving FTX market share by targeting Binance and considering the acquisition of Snapchat’s parent business. Additionally, Ellison’s account of fraudulent practices highlights the lengths Bankman-Fried was willing to go to manipulate Alameda Research’s balance sheets. This testimony serves as a significant blow to Bankman-Fried’s defense, painting a picture of a leader driven by ambition and willing to bend the rules for personal gain.
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