2023-10-12 02:43:11
© Reuters Sam Bankman-Fried’s ex-girlfriend claims she was induced by him to commit crimes
Blockmarket – During the trial of the former CEO of FTX, amid accusations and scandals, Caroline Ellison, former CEO of Alameda Research and former girlfriend of SBF, took center stage when testifying against him.
The bad influence
Ellison’s main argument is blunt: she alleges that she was guided by Bankman-Fried to commit a series of financial crimes. Among the crimes listed, fraud, money laundering and plans where the intention to commit both actions was explicit. She also admitted that under SBF’s direction, sent financial reports to banks that made Alameda Research’s financial situation appear less risky than it actually was.
Basically, Ellison explained that Bankman-Fried created the exchange token FTT, of which Alameda initially owned between 60% and 70% of the supply. These tokens had not been purchased on the open market, but rather generated specifically for this function. Thus, when the price of the FTT token rose, the value of Alameda Research increased by billions, masking the company’s real situation, as these tokens could never be sold for the full value they were valued at without destabilizing the economy itself.
Ellison’s statements as the main witness could be decisive in the outcome of the trial. With the crypto industry closely following the next developments in the case, which have the potential to set precedents for the future of the sector in the US.
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