The much-awaited fraud trials of Sam Bankman-Fried for his role in the fall of once leading crypto exchange FTX are going on in pace. In the recent development, the case saw a crucial turn when Bankman-Fried’s alleged accomplice, Caroline Ellison, testified in court. Ellison stated that she did what SBF told her to do despite being aware that it was a crime.
The New York Times reported that Caroline Ellison, 28, appeared in front of the Manhattan court on Tuesday, October 9, 2023. In court testimony, the veteran trader blamed Bankman-Fried for all the crimes that took place and resulted in the bankruptcy filing of FTX.
It was SBF’s instructions for her to finance venture investments and make loan repayments of Alameda Research using customer deposits of FTX. Since Ellison was overseeing the operations at the crypto hedge fund as chief executive, she said the firm took $14 Billion worth of capital.
During her almost four hours long testimony, Ellison repeatedly blamed SBF many times and also said that he directed her to “commit these crimes.”
Caroline Ellison, someone closely associated with Sam Bankman-Fried, played a pivotal role in the trial, and her testimony was eagerly anticipated. Her testimony and statements are expected to be significant in the proceedings and could provide crucial insights into the case.
Alleged Partner-in-Crime Turned Against Sam Bankman-Fried
Ellison is considered a chief accomplice to Sam Bankman-Fried. Bankman-Fried faced significant notoriety within the cryptocurrency industry after being charged with orchestrating a broad conspiracy to embezzle billions of dollars in deposits from FTX’s customers.
Ellison’s romantic relationship with Bankman-Fried, which was on and off, provided her with unique access to the FTX founder during the period when he was actively building his cryptocurrency empire. This relationship and her role in the case highlight the complexities and dynamics at play within the cryptocurrency industry.
The former Alameda Research executive was among the close ones of Bankman-Fried who pleaded guilty to wire fraud and conspiracy. Two FTX executives, Gary Wang, who also testified in the court during the ongoing trial, and Nishad Singh, also pleaded guilty in December 2022.
Though both Bankman-Fried and Ellison were together in this, they turned against each other as the investigation commenced to find out the culprit behind FTX’s fall.
As the investigation unfolded, SBF blamed Ellison for ignoring his instructions and how she made mistakes while managing Alameda. He deduced that it was her fault that added to the failure of FTX.
However, the recent development revealed Ellison’s side of the story and how things were from her perspective. She asserted that she used to report SBF of everything in the company as he’s the owner. He even set her compensation and held the authority to terminate her.
The fraud trial against Bankman-Fried will continue and Caroline Ellison is said to appear in the court again on Wednesday to take her stand.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/10/11/sam-bankman-fried-directed-me-to-commit-crimes-caroline-ellison/