- The R Roundup
- Posts
- RRUPDATES📍: Justice or Witch Hunt? Caroline Ellison Says SBF’s To Blame ⚖️
RRUPDATES📍: Justice or Witch Hunt? Caroline Ellison Says SBF’s To Blame ⚖️
In a dramatic turn of events during the ongoing trial, Caroline Ellison, former CEO of Alameda Research, pointed an accusatory finger at SBF
The R Roundup
October 10, 2023
RRUPDATES📍: Justice or Witch Hunt? Caroline Ellison Says SBF’s To Blame ⚖️
In a dramatic turn of events during the ongoing trial, Caroline Ellison, former CEO of Alameda Research, pointed an accusatory finger at her ex-business associate and erstwhile romantic partner, Sam Bankman-Fried, the former CEO of FTX.
The courtroom saga unfolded on October 10, revealing shocking details of financial mismanagement that rocked the cryptocurrency world back in November 2022.
Caroline Ellison has arrived at the courthouse to testify in the Sam Bankman-Fried trial today.
Prosecutors say she can share information about the crimes she committed with SBF.
— CoinDesk (@CoinDesk)
Oct 10, 2023
Ellison's testimony shed light on the intricate web of deception that allegedly involved Bankman-Fried orchestrating the misappropriation of FTX user funds. According to Ellison, Bankman-Fried was the mastermind behind the scheme, asserting that he "set up the systems" that allowed Alameda Research to siphon approximately $14 billion from the exchange.
The former Alameda CEO openly admitted to her involvement in fraud, painting a damning picture of her actions under Bankman-Fried's direction.
Sam Bankman-Fried included this photo with Caroline Ellison in a document he sent me, noting that she “was wicked smart,” but “deeply insecure.” CAROLINE TESTIFIES AGAINST SBF IN COURT THIS WEEK.
— Tiffany Fong (@TiffanyFong_)
Oct 10, 2023
This explosive revelation is a significant development in a trial that has captured the attention of the financial community.
Ellison, who initially crossed paths with Bankman-Fried during their tenure at Jane Street Capital, claimed that she was coerced by SBF to abandon her position at the investment firm and join his crypto-focused ventures. Their relationship, once built on professional collaboration, now stands central to the allegations against the former FTX CEO.
AUSA: What was his involvement in the crimes?
Ellison: He was the head of Alameda then FTX. He directed me to commit these crimes.
AUSA: What makes you guilty?
Ellison: Alameda took several billions of dollars from FTX customers and used it for investments.— Inner City Press (@innercitypress)
Oct 10, 2023
Bankman-Fried, now facing seven fraud-related charges, observed the proceedings from the defense table as Ellison's testimony unfolded. The charges stem from his alleged directive to Alameda to access FTX user funds without their consent. These funds were purportedly used for various purposes, including property acquisitions and contributions to political campaigns. Gary Wang, FTX co-founder and former chief technology officer, was among the first witnesses for the prosecution. During his testimony, he claimed complicity in crimes alongside Ellison and former engineering director Nishad Singh.
Gif by theoffice on Giphy
In a bid to defend Bankman-Fried, his attorneys attempted to shift some blame onto Ellison, questioning her role in the events leading up to the collapse of FTX. They alleged that Ellison had disregarded Bankman-Fried's instructions to hedge Alameda investments, implying her culpability in the unfolding financial debacle.
Ellison and Wang, both key insiders from FTX and Alameda, had previously pleaded guilty as part of an agreement with U.S. authorities, securing their testimony against Bankman-Fried. As the trial unfolds, the question remains whether Bankman-Fried will take the stand to present his defense.
This gripping courtroom drama marks the fifth day of Bankman-Fried's criminal trial, a high-stakes legal battle that has sent shockwaves through the cryptocurrency community. The accused, who has steadfastly pleaded not guilty to all charges, is slated to face a second criminal trial commencing in March 2024, further intensifying the spotlight on this deeply convoluted case.
As a reminder, this is not a trading signal or investment advice; it is an opinion, and each trader/investor should know and understand the risks of trading cryptocurrencies.
This should not be regarded as financial advice; feel free to familiarise yourself with our NFA disclaimer.
Join the conversation