FTX Fraud Trial: Spotlight on Caroline Ellison's Testimony as Case against Sam Bankman-Fried Continues
Summary:
The fraud case against former FTX CEO Sam "SBF" Bankman-Fried enters its second week, with primary focus on the testimony from Caroline Ellison, former romantic partner of Bankman-Fried and current CEO of Alameda Research. Ellison is expected to share insights on the suspicious movement of customer funds between FTX and Alameda. Charges against Bankman-Fried include seven counts of conspiracy and fraud related to the collapse of FTX, for which he has pleaded not guilty. The first week of the trial focused on the disappearance of $8 billion in customer funds.
The ongoing fraud case against Sam "SBF" Bankman-Fried of FTX is set to continue into its second week starting from Monday, Oct. 9. A major highlight of this week's proceedings is the anticipated testimony of Caroline Ellison. As the chief executive of FTX's affiliate, Alameda Research, and a former romantic partner of Bankman-Fried, Ellison is tipped to shed more light on some shady transactions between the two companies. Her testimony, projected to be as early as Tuesday, is likely to cover a meeting held in November 2022 where she confessed to using customer funds to repay debts. This move was purportedly approved by Bankman-Fried.
December 2022 saw both Ellison and an ex-FTX executive, Gary Wang, admitting guilt for their parts in the fraudulent activities that led to the downfall of FTX. During the trial on Oct. 5, Wang testified: “With SBF's assistance, Alameda was given unrestricted access to funds". Wang also stated that Bankman-Fried handled affairs including media relations, lobbying, and investor engagements, while he (Wang) was responsible for coding. According to Wang, any final decisions on disputes rested with Bankman-Fried.
Bankman-Fried has been charged with seven counts related to conspiracy and fraud, all linked to the FTX implosion. He has pleaded not guilty to all the charges. Overseeing the case is Judge Lewis Kaplan.
The trial's first week, which began on Oct. 3, was primarily focused on the loss of $8 billion worth of customer funds from FTX. The first week proceeded with outlining the prosecution and defense case, and included testimonies from Wang and Adam Yedidia on Oct. 5. Yedidia, a good friend of Bankman-Fried and a former developer at FTX, also gave his perspective on the matter.
Cointelegraph reporters based in New York are keeping a close eye on the ongoing trial of the previous FTX CEO, Sam “SBF” Bankman-Fried. To keep up with subsequent developments in the case, stay turned.
In other crypto news, SBF's trial is blaring, Mashinsky's case is scheduled, and Binance's market share is seen to be dwindling: as reported by the Hodler’s Digest, from Oct. 1-7.
Published At
10/9/2023 1:50:09 PM
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