• Alameda’s CEO Caroline Ellison testified against SBF in the hearing on 10 October
• Ellison admitted that FTX’s customer funds were used to buy back Binance’s stake in the exchange

The behind-the-scenes of FTX — once a leading crypto exchange — continues to unveil as the criminal trial of its founder Sam Bankman-Fried enters its second week. In today’s (10 October) hearing, Caroline Ellison – the CEO of FTX’s investment branch — Alameda and SBF’s ex-girlfriend — testified before the jury that would eventually decide on Sam’s fate.

Ellison was one of the first people in Sam’s allies to join hands with US regulators, along with Gary Wang – the co-founder of FTX. She had pleaded guilty to committing fraud that led to the collapse of FTX. The Southern District of New York made the announcement in December 2022, immediately after the extradition of SBF. Simultaneously, Ellison agreed to cooperate with the Southern District of New York in its investigation.

Former Alameda head reveals the inside operations of FTX

The testimony started with Ellison claiming that SBF “directed” her to commit financial crimes, according to a series of Tweets by Inner City Press. She stated she was guilty of Alameda taking billions of FTX customers’ funds for investments. While talking about the money taken to pay lenders, Ellison stated “In the ballpark of $10 billion. Ultimately around $14 billion.”

She further admitted that this was the reason the exchange did not have the money to repay lenders. The exchange filed for bankruptcy in November 2022 after failing to meet customers’ withdrawal demands. The bank run started after a report of the company’s balance sheet being dominated by the exchange’s token – FTT emerged.

Connections leading back to Jane Street

Ellison met SBF during the start of her career in Jane Street, where she was a

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Author: Priya NV

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