Former Alameda Research CEO Alleges SBF Bribed Chinese Officials
In her testimony, Caroline Ellison, former CEO of Alameda Research and former romantic partner of FTX founder Sam “SBF” Bankman-Fried, claimed that SBF bribed Chinese officials with millions of dollars to release $1 billion in frozen funds from local exchanges. The funds belonged to Alameda Research and were frozen on Huobi and OKX due to a money laundering probe by Chinese authorities. Ellison stated that Bankman-Fried instructed her and other FTX employees to delete all related messages on the encrypted messaging app Signal.
Failed Attempts and Unsuccessful Access to Funds
Before resorting to bribery, Ellison mentioned that they tried to hire a local lawyer in China for negotiations with the government but were unsuccessful. She further revealed that Bankman-Fried attempted to use wallets from “other people’s accounts,” including Thai sex workers, in an unsuccessful attempt to access the funds. They created multiple accounts on OKX and manipulated imbalanced trades between them to withdraw money.
Unfreezing the Accounts through Bribery
According to Ellison, the frozen accounts were ultimately released after Alameda paid the bribe. However, SBF’s lawyer objected to this statement during the trial. Ellison is scheduled for cross-examination by Mark Cohen, SBF’s lawyer, on October 12.
Additional Charges and Trials
SBF is currently facing seven fraud charges in his ongoing trial that began on October 3. These charges do not include allegations of bribing Chinese officials. In a separate trial set for March 2024, he will face six additional charges, including bank fraud and foreign bribery conspiracy. SBF has pleaded not guilty to all charges.
Hot Take: Allegations of Chinese Bribery Emerge in SBF Trial
In a shocking revelation, Caroline Ellison, former CEO of Alameda Research and ex-partner of SBF, testified that SBF bribed Chinese officials with millions of dollars to unfreeze $1 billion in funds from local exchanges. The frozen accounts belonged to Alameda Research and were locked on Huobi and OKX due to a money laundering investigation. Ellison claimed that Bankman-Fried attempted various unsuccessful methods, including using wallets linked to Thai sex workers, before resorting to bribery. This trial is ongoing, but it raises serious concerns about the ethical practices surrounding cryptocurrency operations.
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