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FTX Founder Sam Bankman-Fried Accused Of Inducing Criminal Behavior By Caroline Ellison

Press Releases Crypto News Bitcoinist FTX Founder Sam Bankman-Fried Accused Of Inducing Criminal Behavior By Caroline Ellison

The trial of Sam Bankman-Fried (SBF), the founder of FTX, has entered its second week, with key witnesses closely associated with the bankrupt exchange testifying against him in court.

Today, Caroline Ellison, Bankman-Fried’s ex-girlfriend and former head of Alameda Research, FTX’s trading arm, brought serious allegations in the courtroom.

Trial Reveals FTX-Alameda Connection In Fund Misappropriation Case

According to Bloomberg, during the trial, defense lawyer Mark Cohen, in his opening statement, partially attributed the collapse of FTX to Ellison’s failure to hedge Alameda’s risky cryptocurrency bets in 2022.

However, Ellison admitted to being aware that FTX utilized customer funds to support Alameda, further stating that she, Bankman-Fried, and others conspired to deceive lenders and conceal the true relationship between FTX and Alameda.

Ellison revealed in her testimony that they had taken approximately $14 billion, some of which was later repaid. Caroline stated that Alameda had borrowed billions of dollars from FTX customers and used it for its investments and to settle debts with lenders.

Notably, Ellison admitted to participating in fraudulent activities, asserting that Bankman-Fried, as the CEO and owner of Alameda, directed her to commit these crimes.

Furthermore, Ellison disclosed that Alameda had once been the sole market maker on FTX but accounted for only 2% of the trading volume at the time of the trial.

Ellison explained that Alameda started borrowing money when it lacked sufficient funds, even borrowing coins that FTX did not pos

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Author: Ronaldo Marquez

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