Caroline Ellison Testifies about Rivalry Between Alameda Research and Modulo
During Sam Bankman-Fried’s trial, his former business associate and ex-girlfriend Caroline Ellison took the witness stand again. She faced cross-examination from defense attorney Mark Cohen regarding the rivalry between Alameda Research and Modulo, a popular crypto hedge fund backed by FTX Derivatives Exchange. Cohen asked Ellison if Modulo was similar to Alameda Research, if she saw Modulo as a competitor, and if she considered it personal competition.
Ellison confirmed that she often felt threatened by Modulo, especially when memos revealed that SBF favored Modulo over Alameda. SBF believed that Modulo had better leadership than Alameda, implying that Ellison was not a natural leader. Before the tension between the two firms, Alameda had been a significant contributor to Modulo, providing $475 million in seed capital. However, FTX’s new leadership sought to retrieve all contributions made by SBF during the exchange’s bankruptcy proceedings.
The Fallout: Modulo Agrees to Repay Funds
After negotiations, Modulo agreed to pay $404 million in cash and relinquish its claim to $56 million in assets held on FTX’s crypto exchange. Ellison’s testimony has shed light on key events leading up to the collapse of FTX. She also claimed that Bankman-Fried attempted to raise funds by selling FTX equity to Saudi Arabia’s Crown Prince Mohammed bin Salman and had ambitions to acquire Snapchat and turn regulators against Binance.
Hot Take: The Significance of the Modulo Link
The connection between Modulo and Alameda Research serves to discount some of the strong allegations made by Ellison during her testimony. It highlights the complex dynamics within the crypto industry and raises questions about loyalty and competition among trading firms. As the trial continues, it will be interesting to see how these revelations impact the outcome and the overall perception of Bankman-Fried’s actions.
Disclaimer: The views expressed here are solely those of the author and do not necessarily represent the views of the publication. Cryptocurrency investments should be made after conducting thorough market research.
Sources: Twitter
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