Former CEO of Alameda Research, Caroline Ellison, began her confessions today about the crypto scammer SBF. SBF’s former accomplices are now confessing the crimes they committed with their bosses. Today’s hearing was crucial due to the confessions to be made by Sam’s ex-girlfriend, Caroline.
FTX Trial on October 10th
Last year, the FTX exchange collapsed, causing significant damage to cryptocurrencies. The ex-girlfriend of Bankman-Fried, who admitted to the fraud related to the collapse of FTX, made confessions in court today. Customers’ funds were withdrawn from the exchange, and risky positions were taken through Alameda. Caroline said that she was the one who “created the system that allowed Alameda to receive money.”
Prosecutor Thane Rane stated in today’s opening speech that although Caroline appeared as the CEO, the real decisions were made by SBF for Alameda. SBF faces seven different charges, and the trial is expected to last 1.5 hours.
Caroline and Her Confessions
What left SBF helpless was that she had already confessed to most of her crimes in Twitter Space broadcasts and interviews. Even worse, her accomplices agreed to testify against her in court as part of a plea deal. Therefore, it seems inevitable for Sam to face years in prison.
Danielle Sassoon first asked Caroline how she knew SBF. Caroline responded as follows;
“At Jane Street, then at Alameda. We dated for a few years.”
When asked if she committed a crime, she admitted to committing fraud. Regarding her confessions about SBF, she said;
“Back then, he was in charge of Alameda and FTX. He directed me to commit these crimes. Alameda received billions of dollars from FTX customers and used it for investments. He created the systems and told us to take the money.”
Caroline also admitted to preparing balance sheets that made Alameda appear less risky than it actually was. So why couldn’t customers withdraw their money in November?
“AUSA: Why weren’t there enough funds for customers in November 2022?
Ellison: We had taken it to repay the lenders.”
Then, a break was taken. The jury left their seats, SBF looked ahead first, then closed his laptop. His ex-girlfriend was sending him to prison by testifying against all his crimes.
