Explosive Claims of Bitcoin Price Manipulation
Caroline Ellison, former CEO of Alameda Research, has made shocking allegations against Sam Bankman-Fried, accusing him of plotting to manipulate Bitcoin prices and keep them below $20,000. This raises concerns about potential price tampering and financial wrongdoing in the FTX trial.
A Staggering Claim
According to Ellison, Bankman-Fried actively tried to sell Bitcoin to artificially suppress prices and prevent them from surpassing $20,000. She claims that he directed Alameda Research to keep selling BTC if the price exceeded this threshold. Industry experts warn that such manipulations could significantly impact the dynamics of the crypto markets.
“Ex-girlfriend Caroline Ellison & Sam Bankman-Fried conspired to keep #Bitcoin under $20k by selling customer BTC.”
Improper Use of Customer Deposits
Ellison also exposed FTX’s financial malpractices and admitted to using customer deposits improperly. Under Bankman-Fried’s leadership, Alameda Research borrowed around $13 billion from FTX clients. These funds were used to clear debt and act as collateral for other investments, raising questions about financial transparency.
Ellison highlighted a troubling episode involving Genesis, a retail lending platform. Despite reservations, she was directed by Bankman-Fried to transfer $500 million to Genesis when it faced insolvency. Ellison also claimed that Bankman-Fried ordered aggressive buying and selling of the native FTT token to defend its peg in case of a price drop.
This testimony implicates Bankman-Fried in the illicit use of client funds and suggests that he misled lenders. It reveals how Alameda and FTX co-mingled operations and engaged in reckless business practices, dealing a major blow to Bankman-Fried’s defense.
Judge Kaplan Denies Evidence Plea
In recent developments, Judge Kaplan denied Bankman-Fried’s plea to introduce evidence related to the role of counsel in formulating loans given by Alameda Research. The defense had hoped to highlight legal teams’ involvement to show no criminal intent. A similar plea to cross-examine Ellison was also rejected by the judge, indicating the strength of her testimony.
Hot Take: Explosive Allegations Shake Crypto Industry
Caroline Ellison’s explosive claims against Sam Bankman-Fried have sent shockwaves through the crypto industry. Accusing him of plotting to manipulate Bitcoin prices and improperly using customer deposits, Ellison’s testimony raises concerns about price tampering and financial transparency in the FTX trial. If proven true, these allegations could have significant consequences for the dynamics of the crypto markets. As the trial continues, Judge Kaplan’s denial of Bankman-Fried’s evidence plea further strengthens Ellison’s testimony and deals a major blow to his defense.
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