Former FTX CEO Sam \u201cSBF\u201d Bankman-Fried watched from the defense table as his former business associate and girlfriend, Caroline Ellison, testified at his criminal trial.<\/p>\n
According to reports from the courtroom on Oct. 10, Ellison admitted to fraud during her time at Alameda under Bankman-Fried\u2019s direction. The former Alameda CEO reportedly placed the blame for misuse of FTX user funds directly on SBF, claiming he \u201cset up the systems\u201d leading to Alameda taking roughly $14 billion from the exchange.<\/p>\n
\u201cAlameda took several billions of dollars from FTX customers and used it for investments,\u201d said Ellison, according to reports. \u201cI sent balance sheets that made Alameda look less risky than it was.\u201d<\/p>\n
Ellison met Bankman-Fried through their jobs at Jane Street Capital, with SBF convincing her to leave the investment firm and join his crypto-focused endeavors. Reports have suggested the two had largely been out of contact following the collapse of FTX in November 2022. <\/p>\n
Ellison\u2019s relationship with SBF is one of the issues central to the allegations facing the former CEO, as he was in charge of the crypto exchange while she led the team at Alameda. Bankman-Fried\u2019s fraud charges are based on him directing Alameda to essentially have access to FTX user funds without customers\u2019 consent, which he used for purchases including property and donations to political campaigns. <\/p>\n
FTX co-founder and former chief technology officer Gary Wang took the stand starting on Oct. 5 as one of the first witnesses for prosecutors, claiming he committed crimes with Ellison as well as former engineering director Nishad Singh. On cross examination of Wang, SBF\u2019s attorneys seemed to be attempting to shift some of the blame on the exchange\u2019s collapse to Ellison, questioning the former CTO on her role. In opening arguments, the defense claimed she ignored Bankman-Fried\u2019s request to put a hedge on Alameda investments.<\/p>\n