Caroline Ellison blames Sam Bankman-Fried for misuse of FTX user funds at trial


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Former FTX CEO Sam “SBF” Bankman-Fried watched from the protection desk as his former enterprise affiliate and girlfriend Caroline Ellison testified at his prison trial.

In line with stories from the courtroom on Oct. 10, Ellison admitted to fraud throughout her time at Alameda at Bankman-Fried’s path. The previous Alameda CEO reportedly positioned the blame for misuse of FTX consumer funds instantly on SBF, claiming he “arrange the programs” resulting in Alameda taking roughly $14 billion from the trade.

“Alameda took a number of billions of {dollars} from FTX clients and used it for investments,” stated Ellison in keeping with stories. “I despatched stability sheets that made Alameda look much less dangerous than it was.”

Ellison met Bankman-Fried by way of their jobs at Jane Road Capital, with SBF convincing her to depart the funding agency and be part of his crypto-focused endeavors. Reviews have urged the 2 had largely been out of contact following the collapse of FTX in November 2022.

Ellison’s relationship with SBF is without doubt one of the points central to the allegations going through the previous CEO, as he was accountable for the crypto trade whereas she led the staff at Alameda. Bankman-Fried’s fraud prices are based mostly on him directing Alameda to primarily have entry to FTX consumer funds with out clients’ consent, which he used for purchases together with property and donations to political campaigns.

FTX co-founder and former chief know-how officer Gary Wang took the stand beginning on Oct. 5 as one of many first witnesses for prosecutors, claiming he committed crimes with Ellison in addition to former engineering director Nishad Singh. On cross examination of Wang, SBF’s attorneys gave the impression to be making an attempt to shift a few of the blame on the trade’s collapse to Ellison, questioning the previous CTO on her function. In opening arguments, the protection claimed she ignored Bankman-Fried’s request to place a hedge on Alameda investments.

Associated: SBF seeks to probe FTX lawyers’ roles in $200M Alameda loans

Ellison and Wang have been a few of the first FTX and Alameda insiders to plead guilty as a part of an settlement with U.S. authorities for her testimony. It’s unclear whether or not Bankman-Fried will take the stand as a part of his protection technique.

The previous Alameda Analysis CEO’s testimony marked the fifth day of SBF’s prison trial, the place he faces 7 prices associated to fraud. He has pleaded not responsible to all prices, and is anticipated to seem in a second prison trial beginning in March 2024.

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