Former Partner Indicts FTX CEO in Trial
The trial of FTX Derivatives Founder’s CEO, Sam Bankman-Fried (SBF), is in its second week. Caroline Ellison, SBF’s former romantic partner and long-term ally, has once again testified against him, accusing him of fraudulent activities.
Bombshell Revelation by Caroline Ellison
In her testimony, Caroline Ellison admitted to committing fraud as the CEO of Alameda Research. However, she claimed that she did so under the direction of Sam Bankman-Fried. According to Ellison, SBF set up systems that allowed him to siphon money from FTX, resulting in about $14 billion being secured by Alameda Research.
“Alameda took several billions of dollars from FTX customers and used it for investments,” Ellison said during the trial. “I sent balance sheets that made Alameda look less risky than it was.”
The relationship between SBF and Caroline Ellison was a mix of business and pleasure, which many believe contributed to the downfall of the trading platform.
Ellison is also facing charges related to her role in bringing down the FTX exchange. Unlike SBF, she has pleaded guilty to the charges and is expected to receive minimal sentencing for her involvement in the fraud.
SBF Trial Not Going Well
The trial has not been favorable for SBF so far, as all witnesses who have testified have indicted him. However, his lawyers may be granted permission to cross-examine some witnesses. With the courtroom drama continuing, there is anticipation for further revelations from Ellison and other potential witnesses.
Hot Take: Caroline Ellison Accuses SBF of Directing Fraudulent Activities at Alameda Research
In the ongoing trial of FTX Derivatives Founder’s CEO, Sam Bankman-Fried (SBF), his former partner Caroline Ellison has made a bombshell revelation. Ellison admitted to committing fraud as the CEO of Alameda Research but claimed that she did so under SBF’s direction. According to Ellison, SBF set up systems that allowed him to siphon billions of dollars from FTX customers and use it for investments. This testimony further implicates SBF in fraudulent activities and adds to the mounting evidence against him in the trial.
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