Former CEO Testifies Against Sam Bankman-Fried
Caroline Ellison, the former CEO of Alameda Research, testified against her ex-boyfriend Sam Bankman-Fried (SBF), the former CEO of FTX, revealing his attempts to unlock frozen funds using other accounts. Chinese authorities had frozen $1 billion in cryptocurrencies on Huobi and OKX in 2021 as part of a money laundering investigation.
SBF’s Attempt with Thai Prostitute Accounts
To unfreeze the assets, SBF and the Alameda management team initially hired a lawyer in China, but when that failed, they resorted to using accounts belonging to Thai prostitutes on OKX. The plan involved executing imbalanced trades between these accounts and the frozen ones to make the latter lose money while the prostitute accounts made money.
When this strategy didn’t work as intended, an Alameda employee suggested bribing Chinese officials. SBF reluctantly agreed and sent $100 million to designated accounts, resulting in the unfreezing of the funds.
More Revelations and Legal Troubles for SBF
As SBF’s trial continues, further revelations about his misconduct at FTX are expected to emerge. He currently faces seven fraud charges and is set to face five more in March 2024.
Hot Take: SBF’s Unethical Actions Exposed
The testimony by Caroline Ellison provides damning evidence against Sam Bankman-Fried’s unethical behavior in attempting to unlock frozen funds. From using Thai prostitute accounts to bribing Chinese officials, SBF’s actions reveal a disregard for legal and moral boundaries. As his trial progresses, it remains to be seen what other revelations will come to light. This case serves as a reminder of the importance of transparency and integrity within the cryptocurrency industry.
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