Caroline Ellison testified in the court against SBF to uncover the dark game that SBF did with FTX & Alameda Research crypto firms.
Sam Bankman-Fried (SBF) is co-founder & former CEO of the now-bankrupt crypto exchange FTX. Allegedly SBF misused his power to mislead the company’s financial figures & misused the customer’s funds for personal benefits like high amounts of gifting to friends & relatives, political donations, etc.
On 10 Oct 2023, Caroline Ellison, SBF’s ex-girlfriend & former CEO of FTX’s sister firm Alameda Research, testified in the court as a fifth witness for the prosecution in the FTX fraud case.
In the court, Ellison said that SBF ordered her directly to show wrong financial figures and commit money laundering and fraud.
She explained that the Alameda firm invested Billions of dollars in several other projects and those funds were taken from the customer’s account without their consent. She also revealed that debts were repaid to lenders through what she described as an “essentially unlimited line of credit”.
According to Ellison, she was an intern at crypto trading firm Jane Street but under the relationship influence, SBF convinced her to leave Jane Street & lead his crypto hedge firm Alameda Research.
She admitted that she maintained very little contact with SBF after the FTX bankruptcy (Nov 2022).
Ellison explained that the company used only the customer’s $14 billion and the company was able to repay only within a limit but still SBF unethically accessed Alameda Research’s fund control for the high amount of political donations.
To hide the whole dark game, SBF ordered her to edit the actual financial figures and send them to lenders and investors.
Earlier this, little-known FTX co-founder Gary Wang stated that SBF used a special type of Python code to show the fake funds behind the FTX insurance fund, indeed there was zero money & that was a fake fund, to mislead customers.
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