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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.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.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/" rel="noopener noreferrer nofollow">used</a> that cash for personal means.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.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>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.The agreement permitted Alameda to borrow unlimited amounts and be free of negative balances and margin calls on FTX’s liquidation protocols.Ellison has previously confessed that she and Bankman-Fried altered financial statements to hide borrowing activity between Alameda and FTX executives.Bankman-Fried, 31, <a href="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/" rel="noopener noreferrer nofollow">pleaded</a> not guilty in January.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" rel="noopener noreferrer nofollow">@innercitypress</a>, from inside the courtroom on day 4:<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"><div class="wp-block-embed__wrapper"><blockquote class="twitter-tweet">AUSA: What is this a photo of? Gary Wang: Sam at his desk in Hong Kong. It's where I talked to him. AUSA: GX 1475. [Again, Inner City Press will work to obtain and upload some of these asap, like <a href="https://t.co/6lT8kMy3kt" rel="noopener noreferrer nofollow">https://t.co/6lT8kMy3kt</a><a href="https://t.co/DYESZlw5we" rel="noopener noreferrer nofollow">pic.twitter.com/DYESZlw5we</a>— Inner City Press (@innercitypress) <a href="https://twitter.com/innercitypress/status/1710304471689900038?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">October 6, 2023</a></blockquote></div></figure><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>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>

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

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