- Caroline Ellison’s testimony hints at a scheme to maintain Bitcoin’s price below $20,000.
- Alameda Research, under FTX’s guidance, borrowed $13 billion from clients by September 2022.
From our perspective on the recent online article, the cryptocurrency domain is reeling from the revelations emerging from Sam Bankman-Fried’s trial, the pioneer of FTX, a leading crypto exchange. In a turn of events, Caroline Ellison, his former romantic partner and the erstwhile head of Alameda Research, made astonishing allegations. She hinted at a potential manipulation of Bitcoin prices, citing a directive: “Keep selling BTC if it’s over $20K.” If verified, such acts could massively sway the digital currency’s market dynamics.
Ellison’s Revelations on FTX’s Financial Endeavors
Delving deeper into the financial maneuvers of FTX, Ellison presented alarming figures. She asserted that by September 2022, under the stewardship of Bankman-Fried, Alameda Research borrowed an astounding $13 billion from FTX’s clientele. These vast sums, she alleged, were primarily used for settling debts and acting as collateral for diverse investment purposes, triggering debates on the platform’s fiscal transparency.
Turbulent Dealings with Genesis
Yet another controversy came to light when Ellison recalled an episode concerning Genesis, a notable retail lending platform. Genesis, on the verge of insolvency, apparently approached FTX for a staggering $500 million. Ellison stated that despite having apprehensions about the genuineness of this transaction, Bankman-Fried instructed her to facilitate the transfer to Genesis.
Judge Kaplan’s Stance on Defense’s Evidence
Progressing through the trial, the defense’s tactics have become increasingly evident. In a recent twist, Judge Lewis A. Kaplan turned down a request from Bankman-Fried’s legal brigade. They sought to introduce evidence pertaining to the counsel’s role when drafting the loans made by Alameda Research during the cross-examination of Gary Wang, ex-FTX chief technology officer. This decision arrived after the defense’s attempt to cross-examine Ellison, indicating Bankman-Fried’s advice to her about activating auto-deletion functions on some of her communication tools. The defense postulates that emphasizing the involvement of Alameda or FTX’s legal units might indicate an absence of any criminal motive, despite the allegations.