Former Alameda Research CEO Accuses Ex-Boyfriend and Former FTX CEO of Directing Crimes
Caroline Ellison, the former CEO of Alameda Research, has testified that her ex-boyfriend and former FTX CEO, Sam “SBF” Bankman-Fried, instructed her to commit crimes that led to the collapse of the cryptocurrency empire. Ellison alleges that under Bankman-Fried’s direction, Alameda accessed FTX customer deposits without consent and used them for various investments, including property purchases and political campaign donations. This misuse of customer funds is at the center of the allegations against Bankman-Fried.
AUSA: What was his involvement in the crimes?
Ellison: He was the head of Alameda then FTX. He directed me to commit these crimes.
AUSA: What makes you guilty?
Ellison: Alameda took several billions of dollars from FTX customers and used it for investments.— Inner City Press (@innercitypress) October 10, 2023
According to Ellison, Bankman-Fried established systems that allowed Alameda to improperly withdraw approximately $14 billion from FTX user funds. Alameda had unrestricted access to customer deposits and direct access to customer funds sent to their bank account. Ellison also admitted to sending misleading balance sheets to banks at Bankman-Fried’s request to hide the company’s actual financial risk.
In addition to their professional relationship, Ellison revealed that she had a personal relationship with Bankman-Fried. They met while working at Jane Street and eventually dated for a couple of years. Ellison joined Bankman-Fried’s hedge fund, Alameda Research, where she worked as a trader before becoming the CEO.
Ellison has previously pleaded guilty to seven fraud charges, including wire fraud, securities fraud, and money laundering conspiracy. Bankman-Fried is facing charges related to misappropriation of customer assets for personal use. The trial is ongoing, and Bankman-Fried maintains his innocence.
Hot Take: Former Alameda Research CEO Accuses Ex-Boyfriend and Former FTX CEO of Directing Crimes
In a shocking turn of events, Caroline Ellison, the former CEO of Alameda Research, has testified that her ex-boyfriend and former FTX CEO, Sam “SBF” Bankman-Fried, directed her to commit crimes that led to the complete collapse of their cryptocurrency empire. Ellison’s allegations include accessing FTX customer deposits without consent and using them for personal investments and political campaign donations. These serious accusations have put Bankman-Fried under intense scrutiny as he faces charges related to the misappropriation of billions in customer assets. As the trial continues, the truth behind these allegations will determine the fate of both individuals involved.
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