Caroline Ellison, the key witness against failed FTX group co-founder Sam Bankman-Fried, has given damning evidence against him. Ellison testifies in court from 19:40 Moscow time, Bloomberg leads text broadcast, reports RBC Crypto.
Her testimony is expected to be critical to the criminal case and will focus on the inner workings of FTX and the related hedge fund Alameda Research, where she served as CEO.
When asked if she committed crimes, Allison answered unequivocally:
Ellison also told jurors that she and Bankman-Fried, along with others, defrauded clients and investors of the FTX exchange and Alameda Research’s creditors. Bankman-Fried remained the majority owner of Alameda Research even after he stepped down from leading the company in 2021, she said. In interviews with reporters, he claimed that Alameda was completely legally separate from FTX and that all of his working time was devoted to managing FTX, not Alameda.
Allison was the sole CEO of Alameda Research from August 2022 until the company collapsed in November. Speaking about her personal connection with Bankman-Fried, she confirmed the fact that they met at the Jane Street trading company and their two-year romantic relationship.
Allison said Alameda “took several billion dollars from FTX customer accounts and used them for its own investments,” as well as for payments to creditors.
Last week, another Bankman-Fried associate, Gary Wang, openly admitted to fraud as FTX’s chief technology officer and to his involvement in running Alameda Research. Speaking in court, he immediately stated that the two of them had committed a multi-billion dollar fraud scheme.
Source: Cryptocurrency
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