Caroline Ellison, the former CEO of Alameda Research, took the stand as a star witness against failed FTX founder Sam Bankman-Fried, claiming that he directed her to commit crimes.
Former Alameda CEO Caroline Ellison testified against Sam Bankman-Fried
Caroline Ellison, the former CEO of Alameda Research, took the stand as a star witness against failed FTX founder Sam Bankman-Fried, claiming that he directed her to commit crimes.
Ellison, who is the ex-girlfriend of SBF, pleaded guilty to committing fraud in December last year and is cooperating with the FTX investigations.
She stated in court: “he directed me to commit these crimes." Ellison said that Bankman-Fried told her to take $14 billion dollars from FTX clients and used $10 billion to repay loans and some of the money to fund Alameda's investments. Ellison also indicated that Bankman-Fried advised adding FTX-owned Paper Bird to Alameda's balance sheet to alleviate perceived risks.
When Ellison performed a risk assessment, she estimated that Alameda would have a 0% chance of being able to repay its loans, even if it used FTX’s customer funds. Ellison also said that when she became co-CEO of Alameda, things “didn't change much” and that SBF was who she reported to.
The trial, in which Bankman-Fried is facing seven criminal charges, is expected to conclude in mid-November.
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