Inside the Ongoing Trial of Ex-FTX CEO Sam Bankman-Fried: Revelations and Claims
Summary:
This text covers the ongoing trial of ex-FTX CEO Sam Bankman-Fried in New York. Details include multiple courtroom testimonies revealing the company's excessive exposure to FTT tokens, Bankman-Fried's relationship with former partner and Alameda Research CEO, Caroline Ellison, and the mismanagement of funds between FTX and Alameda Research. Amid cryptomarket fluctuations, the reported issues led to Bankman-Fried's indictment on multiple charges of fraud and conspiracy. This summary provides a chronological update on the case as it continues to unfold.
Cointelegraph's staff is stationed in New York to provide real-time coverage of the case involving ex-FTX CEO Sam Bankman-Fried. As the courtroom drama unfolds, find the most recent updates below.
October 13: FTX debacle a key factor in BlockFi's bankruptcy filing
According to evidence unveiled in the court proceedings on October 13, BlockFi's leadership had been warned of the platform's excessive exposure to FTT tokens in August 2021, during the trial against Sam Bankman-Fried. BlockFi would not have pursued bankruptcy if not for the FTX crisis.
A credit memo crafted by the BlockFi team last August advised against a Bitcoin loan of 10,000 to Alameda Research, equivalent to roughly $470 million. Zac Prince, founder and former BlockFi CEO, denied the loan application, but Alameda augmented its borrowing with BlockFi in months that followed, touching $1 billion by the second quarter of 2022. Despite the market dips, Prince pointed out that BlockFi wouldn't have been brought to bankruptcy if not for the FTX fallout.
October 12: Further light shed on Ellison's relationship with Bankman-Fried
As former Alameda Research CEO Caroline Ellison's testimonies continue, the legal tussle is focusing more on her ties with Bankman-Fried. On October 12, she shed light on Alameda's decision-making process, the mutual influence between Alameda and FTX, and how her personal relationship with Bankman-Fried factored into the events that led to the FTX crash.
October 11: The FTX saga according to Caroline Ellison
On October 11, Caroline Ellison presented deeper insights into the sequence of events leading up to the FTX collapse during the trial of Sam "SBF" Bankman-Fried. Following the market downturn in May, Alameda Research was asked to repay millions worth of loans in mid-June, which led to severe stress for Ellison.
October 10: Key Witness Ellison takes the stand
Gary Wang wrapped up his testimony on October 10, the fourth day of the trial, post which Ellison, Alameda’s ex-CEO and Bankman-Fried's ex-partner, was summoned. She disclosed personal details about her relationship with the accused and shared information about the firm repurchasing FTT tokens from Binance.
October 6: Further revelations from Gary Wang
The trial resumed for the fourth day on Friday, Oct. 6, with Gary Wang, FTX's ex-chief technology officer, resuming his testimony. As per the press, Wang confirmed, "It withdrew more than it had in its account, like $8 billion in fiat and crypto," when asked about the source, he said, "from FTX customers."
October 5: Wang elaborates on FTX and Alameda Research's relationship
Providing detailed insight into the connection between FTX and Alameda Research, Gary Wang confirmed that FTX granted Alameda special privileges a few months after its inception in 2019.
October 4: Opening arguments for Bankman-Fried's defense and DOJ
Opening statements were delivered by the DOJ and Bankman-Fried's defense counsel to the 12 jurors on the first day of the trial. While the DOJ accused the defendant of deliberately falsifying information to investors for personal gains, his defense team portrayed him as a young entrepreneur whose business decisions simply did not work out.
October 3: Bankman-Fried's trial kicks off
On October 3, Bankman-Fried's trial began with the selection of the jury. The ex-FTX CEO was charged with seven counts of conspiracy and fraud in relation to FTX's collapse. He maintained his innocence on all charges.
It's vital to note that this story is ongoing and updates will be added as new information arises.
Published At
10/13/2023 5:43:33 PM
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