‘He Directed Me To Commit These Crimes’: Alleged Fraudster’s Ex Blames Him At Trial

Sam Bankman-Fried’s ex-girlfriend, Caroline Ellison, blamed him in her testimony Tuesday for the alleged fraud they dedicated, in accordance with The Wall Road Journal.

Ellison was the previous CEO of Alameda Analysis, the sister hedge fund to the FTX cryptocurrency trade, which Bankman-Fried previously headed earlier than it collapsed, in accordance with the WSJ. She asserted in her testimony at his trial that the disgraced crypto tycoon instructed her to commit fraud concerning FTX and Alameda’s relationship and that he put the system in place to allow Alameda to withdraw limitless funds from the cryptocurrency trade. (RELATED: Mother and father Of Sam Bankman-Fried Accused Of Utilizing Son’s Firm To Enrich Themselves, Dem Political Org)

Caroline Ellison arrives in courtroom to testify in opposition to Sam Bankman-Fried 💔pic.twitter.com/mPNfEcLav2

— Altcoin Every day (@AltcoinDailyio) October 10, 2023

“He directed me to commit these crimes,” Ellison reportedly said of Bankman-Fried, in accordance with the WSJ.

“He’s the one who arrange the system to permit Alameda to take cash,” she additionally said.

Bankman-Fried is going through seven expenses, similar to defrauding FTX prospects and lenders, in accordance with the The New York Instances. Prosecutors assert that he masterminded a scheme of diverting billions of {dollars} from prospects’ FTX deposits to fund marketing campaign contributions, donations to charities and actual property acquisitions.

Bankman-Fried allegedly “falsely reassured FTX prospects concerning the security of their funds with the intention to sluggish their withdrawals and retain their cash, and conspired to and did make false statements to Alameda’s lenders to forestall them from recalling thousands and thousands of {dollars} in loans that Alameda owed,” in accordance with the superseding indictment in opposition to him.

“Alameda commonly took buyer funds from these financial institution accounts, transferred the funds to different financial institution accounts underneath Alameda’s management, and used or spent the funds,” the indictment states. “Because of the spending of shoppers’ deposits, FTX and Alameda had a multi-billion-dollar deficit of buyer funds.”

The indictment alleges that Bankman-Fried “directed” Ellison to defraud traders about Alameda’s monetary relationship with FTX, together with how a lot cash Alameda “borrowed” from FTX.

“We finally took round $14 billion, a few of which we have been capable of pay again,” Ellison said on Tuesday, in accordance with CNBC. “I despatched steadiness sheets to lenders on the route of Sam that incorrectly said Alameda’s belongings and liabilities.”

Bankman-Fried has pleaded not responsible and will find yourself in jail for all times if he’s discovered responsible, in accordance with the NYT.

Bankman-Fried’s lawyer didn’t instantly reply to the Every day Caller Information Basis’s request for remark.

All content material created by the Every day Caller Information Basis, an unbiased and nonpartisan newswire service, is accessible with out cost to any professional information writer that may present a big viewers. All republished articles should embrace our emblem, our reporter’s byline and their DCNF affiliation. For any questions on our pointers or partnering with us, please contact [email protected].