Former FTX CEO Sam Bankman-Fried’s Ex-Girlfriend Testifies to Fraud
During the criminal trial of former FTX CEO Sam “SBF” Bankman-Fried, his ex-girlfriend and former business associate, Caroline Ellison, testified that she committed fraud under his direction while at Alameda. Ellison placed the blame for misusing FTX user funds on SBF, stating that he set up the systems that allowed Alameda to take around $14 billion from the exchange. She also admitted to sending balance sheets that made Alameda appear less risky than it actually was.
Relationship and Allegations
Ellison and SBF met while working at Jane Street Capital, and he convinced her to leave the firm and join his crypto-focused ventures. The collapse of FTX in November 2022 strained their relationship, but Ellison’s involvement with SBF is crucial to the allegations against him. Bankman-Fried is charged with directing Alameda to access FTX user funds without consent, using them for personal purchases and political campaign donations.
FTX Co-founder’s Testimony
FTX co-founder Gary Wang testified as one of the first witnesses for prosecutors, claiming that he committed crimes alongside Ellison and former engineering director Nishad Singh. SBF’s defense team sought to shift some blame onto Ellison during cross-examination by questioning her role in the exchange’s collapse. Ellison and Wang pleaded guilty as part of an agreement with authorities, but it remains unclear if Bankman-Fried will take the stand in his defense.
Criminal Trial Update
The trial marked the fifth day of SBF’s criminal trial, where he faces seven fraud-related charges. He has pleaded not guilty to all charges and is expected to face a second criminal trial in March 2024.
Hot Take: SBF’s Ex-Girlfriend Testifies to Fraud at Trial
During the trial of former FTX CEO Sam Bankman-Fried, his ex-girlfriend and former business associate, Caroline Ellison, admitted to committing fraud under his direction while at Alameda. She placed the blame for misusing FTX user funds on Bankman-Fried and testified that he set up the systems that allowed Alameda to take billions of dollars from the exchange. This testimony highlights the central role of their relationship in the allegations against SBF. As the trial continues, it remains to be seen how these revelations will impact Bankman-Fried’s defense strategy.
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