Bankman-Friedβs Girlfriend Reveals SBF Used Customer Funds for Political Lobbying
Caroline Ellison, the ex-girlfriend of FTX founder Sam Bankman-Fried and former CEO of Alameda, testified in the second week of the trial. She disclosed that FTX’s customer funds were utilized for political lobbying purposes, supporting both Democrats and Republicans.
Cross-Examination of Gary Wang, CTO and Co-founder of FTX
Gary Wang, the CTO and co-founder of FTX, faced questioning from prosecutors and was later cross-examined by the defense. Some key points from his testimony include Wang’s revelation that he only learned about Alameda borrowing unlimited funds from FTX when instructed to calculate interest charges by SBF. Additionally, Wang confirmed that FTX had a liquidity engine to prevent clawbacks.
Testimony of Caroline Ellison, Former CEO of Alameda Research
Ellison admitted to committing fraud with Bankman-Fried. According to her testimony, she was instructed by SBF to borrow billions of dollars from FTX’s customer funds for investment in ventures that ultimately failed. Alameda used $14 billion of FTX customer funds to repay its loans. Ellison also revealed that SBF expressed ambitions of becoming the President of the United States.
Hot Take: Revelations of Misuse of Customer Funds in Bankman-Fried’s Trial
The ongoing trial of Sam Bankman-Fried has brought to light concerning revelations about the use of customer funds by FTX and Alameda Research. Testimonies from Bankman-Fried’s ex-girlfriend and former Alameda CEO, Caroline Ellison, have exposed how these funds were used for political lobbying and risky investments that resulted in losses. The trial has highlighted the importance of transparency and accountability in the cryptocurrency industry. It serves as a reminder that investors should exercise caution and conduct thorough research before entrusting their funds to any platform or individual.
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