Here’s the SBF trial latest:
Caroline Ellison, in the ongoing fraud trial of Sam Bankman-Fried, FTX’s founder and former CEO, testified in federal court on Wednesday. She claimed that Bankman-Fried ordered her to find alternative ways to present balance sheets to lenders in order to obscure billions of missing dollars. Ellison’s testimony is crucial to prosecutors’ case, as it alleges that Bankman-Fried was the ultimate decision-maker for both Alameda Research and FTX – two separate sister companies that were, in reality, financially intertwined, according to Ellison and other high-level ex-employees who have testified over the past week.
Also Read: Caroline’s Confession: Ex-Girlfriend Accuses SBF of Directing Her to Steal
7 Balance Sheet Versions To Deceive Lenders
At the time, Alameda Research had borrowed around $10 billion from FTX, with approximately $5 billion given as loans to FTX executives and affiliated entities. In the spring of 2022, as crypto markets plummeted, the crypto trading firm’s lenders began calling back billions in loans, putting Ellison in a “constant state of dread.”
In her testimony, Caroline admitted to preparing seven different versions of the balance sheets that misrepresented the truth behind the two firms’ financial positions. She pleaded guilty as part of a deal with prosecutors in the hope of securing a more lenient sentence; otherwise, she could face over 100 years in prison. Bankman-Fried, too, faces potential consequences that could lead to more than 100 years behind bars.
Also Read: FTX Founder Battles Prosecutors’ Evidence in Fraud Trial
Prosecutors are basing their case on evidence suggesting that Bankman-Fried stole billions of dollars in FTX customer funds to cover Alameda’s losses and enrich himself and others. The money taken directly from FTX customer accounts allegedly enabled Bankman-Fried to purchase luxury real estate and funnel millions of dollars into U.S. political campaigns.
More on the SBF Trial Latest
Caroline Ellison’s testimony marks a significant development in the ongoing fraud trial of Sam Bankman-Fried. Accusations of misrepresenting financial information and siphoning customer funds for personal use raise concerns regarding the integrity of the cryptocurrency sector.
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