Former Alameda Research CEO Accuses Sam Bankman-Fried of Directing Crimes
In a dramatic turn of events, Caroline Ellison, the former CEO of Alameda Research and a key witness in the trial against crypto entrepreneur Sam Bankman-Fried, testified that he directed her to commit crimes. Ellison, who had previously admitted to fraud related to the collapse of crypto exchange FTX, revealed in court that Bankman-Fried was the mastermind behind the system that allowed Alameda to take money from FTX customers.
Alameda Research’s Alleged Misconduct
According to Ellison, Alameda Research unlawfully obtained several billion dollars from FTX customers and used it for investments. The firm reportedly took $14 billion worth of FTX customer funds in total, using $10 billion to repay its lenders. While admitting to these actions, Ellison stated that Alameda was able to partially repay the funds it had taken.
Prosecutors’ Claims Against Bankman-Fried
The prosecution alleges that Bankman-Fried deceived customers by diverting money from FTX for risky trades on Alameda. Prosecutor Thane Rane emphasized during his opening remarks that despite Ellison being named CEO, Bankman-Fried was the one calling the shots at Alameda, with Ellison merely serving as a front.
Controversial Background of Caroline Ellison
Prior to her involvement in this trial, Caroline Ellison garnered attention for her controversial views on race science and polyamory, which she expressed on Tumblr. In private writings, she even stated that the collapse of the FTX empire was a positive outcome and admitted her own inadequacy in running Alameda.
The Trial and Future Proceedings
Sam Bankman-Fried was arrested following the bankruptcy filing of FTX, once a prominent player in the crypto industry. He now faces seven criminal charges, and his trial is expected to last six weeks. The testimony of Caroline Ellison, who accuses Bankman-Fried of directing criminal activities, adds a significant twist to the proceedings.
Hot Take: Key Witness Reveals Alleged Criminal Involvement of Sam Bankman-Fried
In a shocking revelation during the trial, former Alameda Research CEO Caroline Ellison testified that Sam Bankman-Fried directed her to commit crimes. This accusation puts Bankman-Fried in a precarious position as he faces multiple criminal charges. The testimony also sheds light on the alleged misconduct of Alameda Research, which reportedly took billions of dollars from FTX customers. As the trial continues, it remains to be seen how this revelation will impact the outcome and potential consequences for Bankman-Fried.
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