- Caroline Ellison, former CEO of Alameda Research, admits to fraud but alleges it was under Sam Bankman-Fried’s direction.
- Ellison claims SBF had systems in place to extract billions from FTX.
In the ongoing trial of FTX Derivatives Founder’s CEO, Sam Bankman-Fried (known as SBF), the waters have been muddied further. Former Alameda Research CEO, Caroline Ellison, has admitted to fraudulent activities during her tenure. But in a turn of events, she revealed that she didn’t act on her own – she was following directives given by SBF himself. This revelation came to light after a tweet by Collin Brown @CollinBrownXRP noted,
🔥Game over for FTX's SBF!🔥
She alleges SBF directed her to commit fraud totaling billions! 😱 pic.twitter.com/B4zePgBs7K
— Collin Brown (@CollinBrownXRP) October 11, 2023
As Ellison delved deeper into the details, she pointed out how SBF established systems that allowed him to divert vast sums of money away from FTX. According to her testimony, this mechanism facilitated the misappropriation of about $14 billion from the now-insolvent digital currency trading platform, FTX. She stated, “Alameda took several billions of dollars from FTX customers and used it for investments. I sent balance sheets that made Alameda look less risky than it was.”
A Complex Relationship Unraveled
Caroline Ellison and SBF weren’t just business partners; they shared a personal relationship too. Their journey began as pioneers in the cryptocurrency space. Ellison even left her position at Jane Street Capital, influenced by SBF, to pursue crypto opportunities together. As they navigated the complex waters of business and romance, many speculate that their personal involvement was a significant factor in the downfall of the trading platform.
Currently, Ellison is also under scrutiny for her involvement in FTX’s demise. Unlike SBF, she has accepted the allegations against her, leading to speculation that she may receive a lighter sentence given her cooperation. On the other hand, SBF’s trial seems to be taking a downward turn, with many witnesses testifying against him. As the legal drama unfolds, the community is on the edge of their seats, waiting to hear more from Ellison and other potential witnesses.