As the trial involving Sam Bankman-Fried (SBF), the former CEO of FTX exchange continues to unfold, Caroline Ellison, a former Alameda executive <a href="https://twitter.com/innercitypress/status/1711783159031853093">has offered a gripping narrative of SBF’s </a>financial maneuvers in recent testimony. 
<h2 id="b-sam-bankman-fried-quest-for-capital-b">Sam Bankman-Fried Quest for Capital</h2> 
One of the central themes in Ellison’s testimony was Bankman-Fried’s unwavering pursuit of new capital to fund ambitious trading strategies and acquisitions. Ellison testified that Alameda Research, a subsidiary firm of FTX initially relied on funds from friends and family, However, as its ambitions grew, SBF sought external lenders to maintain liquidity. 
What particularly drew attention during the testimony was the practice of borrowing customer deposits, which allegedly began at Bankman-Fried’s direction while he was CEO of Alameda Research. This practice involved using funds deposited by customers on the platform to enable more trades, investments, and acquisitions. 
Ellison explained that this practice was carried out using Alameda’s main “info@” trading account, which held a substantial $65 billion line of credit. Borrowing customer deposits allowed for profitable trades, such as arbitrage opportunities, where Alameda could borrow certain tokens held by their customers and sell them on other platforms for profit.&nbsp; 
<h2 id="b-sbf-trial-unfolding-secrets-b">SBF Trial: Unfolding Secrets</h2> 
Ellison further testified that when Alameda faced challenges in securing loans from traditional lenders, Sam Bankman-Fried devised a creative solution by introducing the FTT token. He allocated a significant portion of FTT tokens to Alameda for free, giving them the financial leverage they needed. This strategic move allowed Alameda to secure open-term loans from lenders like Genesis. 
As Alameda Research increasingly relied on borrowing, its posted collateral grew thinner, propped up by what Ellison referred to as “Samcoins.” These illiquid tokens, closely linked to Bankman-Fried himself, included assets like FTT, Serum, Maps, and Oxygen, Ellison testified. 
As Alameda’s borrowing continued to spiral in 2022, Ellison discovered that she was not privy to all of the financial activities within the organization. In May 2022, she learned of $5 billion in loans to Alameda executives <a href="https://thecoinrise.com/ftx-founders-political-donations-to-be-presented-as-evidence/">used for venture investments and political contributions</a>. 
<h2 id="b-ellison-faces-consequences-b">Ellison Faces Consequences</h2> 
It is worth noting that <a href="https://thecoinrise.com/alameda-ceo-and-ftx-exec-plead-guilty-to-charges/">Ellison and other Alameda insiders pled guilty</a> in exchange for their testimony. However, Bankman-Fried has maintained his innocence and has yet to take the stand as part of his defense strategy. 
As the legal proceedings continue, the crypto community and financial industry will be closely watching, as these allegations have the potential to reshape the way crypto exchanges and firms conduct their operations in the future. With a second criminal trial scheduled for March 2024, the saga shows no signs of concluding anytime soon. 
The post <a rel="nofollow" href="https://thecoinrise.com/sbf-trial-caroline-ellison-testifies-of-bankman-frieds-financial-maneuvers/">SBF Trial: Caroline Ellison Testifies of Bankman-Fried’s Financial Maneuvers</a> appeared first on <a rel="nofollow" href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

SBF Trial: Caroline Ellison Testifies of Bankman-Fried’s Financial Maneuvers

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