In a stunning twist on Wednesday, Caroline Ellison shared shocking testimony, claiming that she and a group of FTX and Alameda executives had offered a substantial bribe to Chinese officials to unlock substantial funds held in Chinese exchanges. This revelation is one of the most sensational moments in the trial. While Ellison revealed a lot of information, the defense has not yet responded to the former CEO’s claims.
Well, what do we make of this information?
It’s important to note that FTX and Alameda were not directly involved in the investigation. Ellison claimed it revolved around an entity that, at one point, had dealings with Alameda and was under scrutiny for potential money laundering activities.
A Twisted Trail of Fraud
Caroline Ellison’s testimony during the trial of Sam Bankman-Fried (SBF) has unveiled a complicated series of events. According to her account, after Chinese authorities froze nearly $1 billion in assets linked to Alameda Research on exchanges Huobi and OKX in 2021, a year-long struggle to resolve the issue followed.
Initially, a local lawyer in China was engaged, but this approach yielded no results. Then, a rather unconventional strategy was attempted, involving creating accounts under the names of individuals believed to be Thai sex workers. The idea was to carry out uneven trades between these accounts to enable specific accounts to make a profit and withdraw funds. Unfortunately, this unique tactic proved ineffective.
Also Read: Sam Bankman-Fried Considered Buying Snapchat, Says Caroline Ellison
A Cryptic Resolution
When these attempts failed, SBF became receptive to an alternative solution that one employee called “his way” of handling the situation. This led to a contentious exchange, where SBF allegedly raised his voice, instructing an employee, who happened to be the daughter of a Chinese official, to “shut the f*** up.” Eventually, Ellison claimed, Alameda paid approximately $150 million to Chinese officials, releasing the frozen funds.
Finally, the funds were secured after Ellison paid $100 million to a crypto account, which, to her understanding, was tied somehow to Chinese government officials.
Read More: Sam Bankman-Fried Was Manipulating Bitcoin Price to Stay Under $20,000, Ellison Claims
The End is Yet to Come
The frozen funds and allegations of bribery paint a vivid picture in the ongoing legal saga. The trial is far from over, with Ellison’s cross-examination expected to shed further light on this intricate narrative. SBF, who faces multiple charges, maintains his plea of not guilty. This high-profile and complex trial continues to captivate the crypto community, standing as a significant focal point in the ongoing discourse.
Source: https://coinpedia.org/news/caroline-ellisons-jaw-dropping-claims-of-bribing-chinese-officials-in-sbf-trial/