Carolina Ellison, the CEO of Alameda at the time of the collapse, recently testified in the case against Sam Bankman-Fried (SBF), the founder of the failed crypto exchange FTX. Ellison’s testimony could potentially complicate SBF’s defense as she admitted to carrying out orders given by SBF himself. It was revealed that Ellison and SBF had a romantic relationship for two years, creating a sentimental partnership between them.
Ellison cooperated with the prosecution for almost a year in hopes of receiving a lighter sentence. She confessed that the financial documents she prepared were dishonest and aimed to hide Alameda’s financial instability. She even prepared multiple alternative financial statements to present to a lender who requested financial information. Additionally, she supported FTX executive Gary Wang’s claim that Alameda had access to an unlimited line of credit using FTX customers’ funds.
Despite her illegal actions, Ellison maintained that she was merely following SBF’s orders as the founder of both FTX and Alameda. This testimony complicates SBF’s defense in the case against the collapsed crypto exchange FTX.
SBF is accused of embezzling billions of dollars from customer deposits on his FTX exchange to cover losses in his cryptocurrency trading firm, Alameda Research. However, SBF has pleaded not guilty to seven counts of fraud and conspiracy.
Ellison’s testimony aims to complicate SBF’s defense significantly. Her words were further confirmed by an audio recording made by a former Alameda developer, Christian Drappi, who stated that the decision to repay loans with client funds was made by SBF. This corroboration poses challenges for SBF’s defense if they try to argue coercion or false testimony.
In addition to these revelations, Ellison’s testimony also exposed a $100 million payment made by Alameda to two crypto-wallets in China as a bribe. Allegedly, this payment was made on behalf of SBF to persuade Chinese officials to unblock two cryptocurrency trading accounts worth approximately $1 billion held by Alameda in China. Ellison also disclosed that this order came after other attempts to move funds out of China, including using accounts belonging to Thai prostitutes, had failed.
Furthermore, Ellison’s testimony implicated SBF in a conspiracy to manipulate the price of bitcoin (BTC). These revelations from Ellison’s testimony have significant implications for the ongoing case against SBF and the collapsed crypto exchange FTX.
Hot Take: Carolina Ellison’s Testimony Adds Complexity to SBF’s Defense
Carolina Ellison’s recent testimony in the case against Sam Bankman-Fried (SBF) has added another layer of complexity to SBF’s defense. Her admission of carrying out orders given by SBF himself raises questions about his involvement and control over the actions taken at FTX and Alameda Research. The corroboration of her testimony by an audio recording further strengthens her claims. Additionally, her revelations about bribes in China and a conspiracy to manipulate BTC prices bring forth serious allegations against SBF. As the trial progresses, Ellison’s testimony will likely play a crucial role in determining the outcome of the case.
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