A text exchange involving Sam Bankman-Fried and Ellison showed the latter claiming she was in an ‘excellent mood.’
Most of the jury’s attention has been directed to optional balance sheets as well as to-do lists involving Caroline Ellison’s testament. However, a tissue pulled out on Wednesday afternoon by the ex-chief executive officer of Alameda Research portrayed a break from thorough responses while on the stand.
In her testimony, Ellison claimed she was in a continuous state of fear.
Alameda Research Ex-Chief Testifies Against Bankman-Fried
Currently, Ellison is the government’s primary witness in the case against Sam Bankman-Fried (SBF), the ex-CEO of FTX, the once-leading cryptocurrency exchange. SBF is facing seven charges linked to the exchange’s collapse. Additionally, he is accused of using billions in client funds to compensate for losses suffered by Alameda. This is a trading desk established by SBF in 2019.
In today’s testimony, Ellison said she knew they were required to take money from the FTX line of credit, and the money could be called at any instance. Besides, she said that daily, she was anxious about the likelihood of clients withdrawing from FTX, the prospect of the situation becoming public, and the extent to which affected persons would be hurt.
FTX Clients’ Funds Routed to Fill Gaps Surfacing in Alameda’s Books
She began shedding tears, and her voice trembled as she spoke concerning the emotional burden taken away after it became evident that FTX and Alameda would not handle a lethal burst of client withdrawals last November. Ellison said that SBF, her superior and periodic boyfriend, instructed her to utilize FTX client funds to fill gaps in Alameda’s balance sheet. The supposed malpractice led to an $8B loss for clients whose cryptocurrency was held on the exchange.
Between sobs, she said she was glad that she did not have to lie again. Besides, she claimed she was significantly burdened by the concern for clients and persons who would lose their jobs. Shortly afterward, a conversation between Ellison and SBF was disclosed as proof. This chat focused on FTX and Alameda’s last days. The ex-CEO of Alameda told SBF that in over a year, she was in an excellent mood as the two companies lost a lot of money.
Federal prosecutors concluded Ellison’s direct testimony with little time left. The government called foul after a cross-examination that lasted nearly 15 minutes and focused on the nuances regarding Alameda’s recording of funds’ flow.
Danielle Sassoon, the Assistant United States Attorney, objected and said the situation was confusing. Judge Lewis Kaplan admitted it had been a long day by suggesting adjournment for the day nearly half an hour earlier, to which no one complained. SBF’s attorneys were expected to resume the case from where it left off the following day.
Editorial credit: Poetra.RH / Shutterstock.com
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