Gary

<div class="insidebitcoins">
 Star witness Caroline Ellison wept at the end of a second day of testimony against former boyfriend Sam Bankman-Fried as she described a web of deceit at the collapsed FTX crypto exchange he founded
 Ellison’s voice trembled as she recalled the “worst week of my life,” and said that when the truth about their deceitful actions was revealed, “I felt a sense of relief that I didn’t have to lie anymore.”&nbsp;&nbsp;
 <h2 class="p3" id="span-class-s1-dishonest-balance-sheet-span">Dishonest Balance Sheet</h2>
 At the core of the deception was a balance sheet document that led to the collapse of Bankman-Fried’s companies. Ellison said it was deliberately designed to mislead lenders, presenting a false picture of affiliate Alameda Research’s financial health. 
 She called it a “dishonest” document and revealed that even with manipulated numbers, it still showed significant risks for hedge funds.
 <h2 class="p3" id="caroline-ellison-ordered-to-use-ftx-funds-for-alameda">Caroline Ellison Ordered To Use FTX Funds For Alameda</h2>
 Ellison said that Bankman-Fried, who is on trial on charges of fraud and conspiracy, instructed her to use FTX customer funds to repay Alameda Research’s lenders, even though she had strong concerns about it.
 The decline of the crypto token Luna in May 2022 triggered a market downturn, prompting creditors to recall loans. This put the company in a vulnerable situation as it relied on FTX customer funds that could be withdrawn at any moment, she said.
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 AUSA: Let's pull up GX 1987. Where were you when the leak happened? Ellison: On vacation in Japan. I decided not to comment. AUSA: What did the leaked balance sheet show? Ellison: It understated things, it was dishonest, but it still showed risk, FTT
 — Inner City Press (@innercitypress) October 11, 2023
 </blockquote>
 
 <h3 id="caroline-ellison-sam-told-me-to">Caroline Ellison: ”Sam Told Me To”</h3>
 Despite her concerns, Ellison testified that she continued to use FTX customer funds to repay lenders, following Bankman-Fried’s orders. “Sam told me to,” she told the court.&nbsp;
 Ellison, then Alameda’s CEO, said she felt it was wrong and that it left her in a state of constant anxiety.&nbsp;
 “Every day I was worrying about the possibility of customer withdrawals at FTX,” she said.
 <h2 class="p3" id="span-class-s1-bribing-chinese-officials-and-thai-prostitute-accounts-span">Bribing Chinese Officials And Thai Prostitute Accounts</h2>
 Ellison also claimed that she and a group of FTX and Alameda executives resorted to “paying a large bribe to Chinese officials” to release funds locked in Chinese exchanges. 
 She said that the investigation involved an entity that had previously traded with Alameda and was being probed for money laundering.
 Bankman-Fried, the defendant, was not charged in connection with these alleged bribes. However, Judge Lewis Kaplan suggested that this anecdote was presented to illustrate Bankman-Fried’s “trust and confidence” in Ellison and the potential motives behind their actions.&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;
 When negotiations with the Chinese government failed, Ellison testified that they attempted a scheme using fake exchange accounts under the identities of “Thai prostitutes” to access the funds.&nbsp;
 In the end, the funds were released after Ellison transferred $100 million to a cryptocurrency account connected to Chinese government representatives, even though she admitted her understanding of the situation was unclear.&nbsp;
 During this process, Bankman-Fried’s impatience became apparent when he sharply told an employee, whose father had ties to the Chinese government, to “shut the f*** up,” Ellison said.
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 AUSA: What does this say? Ellison: "Sam Bankman-Fried set the disappearing message time for 1 week." AUSA: Did you speak in coded terms? Ellison: Yes. When we gave a large bribe to China – our accounts were frozen in a money laundering investigation.
 — Inner City Press (@innercitypress) October 11, 2023
 </blockquote>
 
 In a confidential memo entitled, “State of Alameda,” written by Ellison in November 2021, she referred to the payment to Chinese officials in coded terms as “-150m from the thing,” and acknowledged that she thought it was a bribe.
 Ellison also said that Bankman-Fried had urged his team to avoid putting sensitive information in writing and had encouraged the use of disappearing messaging services to prevent “legal trouble.”
 <h2 class="p3" id="span-class-s1-bankman-fried-s-unconventional-beliefs-span">Bankman-Fried’s Unconventional Beliefs</h2>
 Bankman-Fried did not adhere to principles like “don’t lie” and “don’t steal,” Ellison said.
 The FTX founder characterized himself as a “utilitarian” who believed that the most important rule was to maximize overall well-being for most people, according to Ellison.
 “He didn’t believe that rules like ‘don’t lie’ or ‘don’t steal’ aligned with that framework,” she added.
 Over time, being exposed to this mindset made her more accepting of carrying out actions at Bankman-Fried’s direction that she recognized as morally wrong, she said.
 Bankman-Fried aimed to project an image as a “smart, competent, somewhat unconventional founder” and regarded his low-maintenance appearance and hairstyle as “highly valuable,” she added.
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 AUSA: What about cars? SBF's lawyer: Objection, relevance. Judge Kaplan: Overruled. Ellison: Sam said it was better for his image to drive a Toyota Corolla. So I drove a Honda.
 — Inner City Press (@innercitypress) October 11, 2023
 </blockquote>
 
 <h2 class="p3" id="span-class-s1-targeting-binance-and-saudi-investment-strategies-span">Targeting Binance and Saudi Investment Strategies</h2>
 The prosecutors presented another document written by Ellison to the jury, which was a personal task list. 
 In this list, there was an entry about “getting regulators to crack down on Binance,” the biggest cryptocurrency exchange globally.
 Ellison mentioned that Bankman-Fried believed that encouraging regulators to act against Binance could be a valuable strategy for FTX to expand its market presence. She also noted that regulators had given assurances about this for some time.
 <h2 class="p3" id="span-class-s1-related-articles-span">Related Articles</h2>
 <ul class="ul1">
 <li class="li5">Sam Bankman-Fried Directed Me to Commit Crimes, Caroline Ellison Tells Court </li>
 <li class="li5">Gary Wang Says He And Sam Bankman-Fried Committed Financial Crimes, ”Lied About” Alameda Research Funding </li>
 <li class="li5">Caroline Ellison Issues an Apology for Her Behavior in the FTX Collapse </li>
 </ul>
 Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/caroline-ellison-says-sam-told-me-to-as-she-reveals-deceit-bribes-at-ftx-tbt66162.html">https://thebittimes.com/caroline-ellison-says-sam-told-me-to-as-she-reveals-deceit-bribes-at-ftx-tbt66162.html</a>
</div>

Caroline Ellison Says ‘Sam Told Me To’ As She Reveals Deceit, Bribes at FTX

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