The Shocking Revelations in the SBF Trial: Manipulation, Bribes, and More
In the ongoing SBF trial, new shocking details have emerged that shed light on the manipulation and misconduct within Alameda Research. Caroline Ellison, SBF’s ex-girlfriend and former CEO of Alameda, took the witness stand and made several startling confessions.
SBF’s Control over Alameda
Ellison revealed that Sam Bankman-Fried (SBF) was the mastermind behind Alameda’s operations. He directed her on how to use the company’s funds, interact with institutions and investors, and move capital. This control ultimately led to $10 billion in outstanding third-party loans by mid-2022.
Ellison also expressed relief when things started falling apart, as she no longer had to lie to investors. She warned SBF about the state of Alameda’s balance sheets and advised against high-risk trades in 2022.
Bribes Involving Chinese Government Funds
In 2021, the Chinese government froze $1 billion of Alameda’s funds on Huobi and OKX. Ellison revealed that SBF and his team explored various ways to access these funds. They considered negotiating with Chinese officials through lawyers, using crypto addresses belonging to Thai prostitutes, or even bribing Chinese officials with $100 million.
Ellison testified that she was unaware of the individuals behind these accounts but confirmed that the order to bribe Chinese officials came from Trabucco and Bankman-Fried. One employee who opposed this decision was told by SBF to “shut the fuck up.” Handi Yang eventually quit, raising further questions about the company’s ethics.
Schemes Involving Saudi Crown Prince and Doctored Balance Sheets
Ellison also revealed that SBF attempted to use funds from the Saudi Crown Prince to pay off Alameda’s lenders. This involved using FTX’s customer funds, leading to a spiral of debt and misuse of funds.
Furthermore, Ellison admitted to doctoring Alameda’s balance sheets and creating multiple versions with inflated numbers. The firm’s net asset value was far lower than reported, with liabilities exceeding $14.9 billion.
Implications for the Crypto Industry
The revelations in this trial have significant implications for the cryptocurrency space. They raise concerns about industry regulations and investor confidence. Several executives, including Ellison, have turned against SBF, further damaging his defense.
If convicted, SBF could face over 110 years in prison on seven federal charges. This trial serves as a reminder of the potential risks and misconduct that can occur within the crypto industry.
Hot Take: The Unraveling of Alameda Research: A Tale of Manipulation and Misconduct
The SBF trial has captivated the crypto community with its shocking revelations. From manipulation of funds to bribery attempts and doctored balance sheets, the trial exposes the dark side of Alameda Research and its founder, Sam Bankman-Fried.
These revelations not only impact the fate of SBF but also raise questions about industry regulations and investor confidence in the crypto space. The trial serves as a cautionary tale for those involved in the industry and highlights the importance of transparency and ethical practices.
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