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<p class="is-style-lead">Disgraced FTX founder Sam Bankman-Fried’s trial will resume for its fifth day on Oct. 10, with prosecutors expected to question his ex and former colleague, Caroline Ellison.</p>
<p class="is-style-default">The trial, which is set to last six weeks, will continue on Tuesday with key testimony expected from Ellison, who is regarded as a star witness to the goings-on at Alameda Research, where she held the title of CEO.</p>
<p class="is-style-default">Alameda, a sister firm to FTX, allegedly siphoned off $8 billion in customer money from FTX and <a href="https://crypto.news/ftx-brass-spent-more-than-2-5m-in-customer-funds-on-a-luxury-yacht/" data-type="link" data-id="https://crypto.news/ftx-brass-spent-more-than-2-5m-in-customer-funds-on-a-luxury-yacht/" rel="noopener noreferrer nofollow">used</a> that cash for personal means.</p>
<p class="is-style-default">Ellison, along with former FTX CTO Gary Wang, pleaded guilty in December. Since then, they have been working with the U.S. attorney’s office in Manhattan.</p>
<p>You might also like: <a href="https://crypto.news/caroline-ellison-admits-to-stealing-billions-of-dollars-from-ftx-customers/" rel="noopener noreferrer nofollow"> Caroline Ellison admits to stealing billions of dollars from FTX customers </a></p>
<p>Observers of the trial should expect Ellison to discuss the sequence of events from 2019 to 2022, where FTX allegedly allowed Alameda to receive billion-dollar loans without posting collateral.</p>
<p>The agreement permitted Alameda to borrow unlimited amounts and be free of negative balances and margin calls on FTX’s liquidation protocols.</p>
<p>Ellison has previously confessed that she and Bankman-Fried altered financial statements to hide borrowing activity between Alameda and FTX executives.</p>
<p>Bankman-Fried, 31, <a href="https://crypto.news/sec-charges-sam-bankman-fried-with-defrauding-the-us-clients/" data-type="link" data-id="https://crypto.news/sec-charges-sam-bankman-fried-with-defrauding-the-us-clients/" rel="noopener noreferrer nofollow">faces</a> seven federal charges, including fraud and money laundering. He <a href="https://crypto.news/disgraced-ftx-founder-sbf-pleads-not-guilty/" data-type="link" data-id="https://crypto.news/disgraced-ftx-founder-sbf-pleads-not-guilty/" rel="noopener noreferrer nofollow">pleaded</a> not guilty in January.</p>
<p>Ellison’s testimony follows Wang’s, which took place on Friday — the fourth day of the trial. Here are the latest live updates by <a href="https://twitter.com/innercitypress/status/1710288767720820990?s=20" target="_blank" rel="noopener noreferrer nofollow">@innercitypress</a>, from inside the courtroom on day 4:</p>
<h2 class="wp-block-heading" id="wang-s-testimony">Wang’s testimony</h2>
<ul>
 <li>Alameda had to “Allow Negative” privileges on FTX’s platform.&nbsp;</li>
 <li>This allowed Alameda to trade more funds than it had on its account.&nbsp;</li>
 <li>Alameda has a large line of credit, and it could trade faster than other accounts.&nbsp;</li>
 <li>Alameda could withdraw more fiat and crypto than it had on its account; it withdrew $8 billion.</li>
 <li>Wang said these funds came from FTX’s customer deposits.&nbsp;</li>
</ul>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">AUSA: What is this a photo of?<br>Gary Wang: Sam at his desk in Hong Kong. It's where I talked to him.<br>AUSA: GX 1475. <br>[Again, Inner City Press will work to obtain and upload some of these asap, like <a href="https://t.co/6lT8kMy3kt" target="_blank" rel="noopener noreferrer nofollow">https://t.co/6lT8kMy3kt</a> <a href="https://t.co/DYESZlw5we" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/DYESZlw5we</a></p>— Inner City Press (@innercitypress) <a href="https://twitter.com/innercitypress/status/1710304471689900038?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 6, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<ul>
 <li>Bankman-Fried, or SBF, asked Nishad and Wang to create this ‘backdoor code’ in July 2019 — two months after FTX was founded.&nbsp;</li>
 <li>Alameda had another account with FTX under a different name – Cottonwood Trading.&nbsp;</li>
 <li>In 2020, Alameda’s negative balance was more than FTX’s revenue.&nbsp;</li>
 <li>Alameda’s total line of credit was $65 billion.</li>
 <li>No other customer had credit with FTX upwards of $1 billion.&nbsp;</li>
 <li>SBF told Alameda to pay off Genesis’s loans using FTX’s customer funds.&nbsp;</li>
</ul>
<p>Read more: <a href="https://crypto.news/sbf-trial-day-4-witness-recounts-alamedas-65b-credit-line-and-alleged-unlimited-ftx-withdrawals/" rel="noopener noreferrer nofollow"> SBF trial day 4: witness recounts Alameda’s $65b credit line and alleged unlimited FTX withdrawals </a></p>

What to expect when FTX founder Sam Bankman-Fried’s trial resumes for day 5

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