Caroline Ellison, the ex-CEO of Alameda Analysis, took the stand because the fifth witness for the prosecution in Sam Bankman-Fried’s six-week trial, claiming that the previous FTX CEO directed her to commit fraud and cash laundering crimes.
Ellison added that whereas she ran Alameda, she took a number of billion {dollars} from clients to spend money on different initiatives and repay money owed to lenders by an “basically limitless line of credit score.”
Alameda took $14 billion in whole from clients, however “some we have been capable of pay again,” Ellison testified. She additionally mentioned she despatched modified steadiness sheets to buyers and lenders on the route of Bankman-Fried so Alameda Analysis may “look much less dangerous than it was.”
Ellison has pleaded responsible to a number of prices and accepted plea agreements, alongside Gary Wang, co-founder and CTO of FTX, and Nishad Singh, director of engineering at FTX. Wang testified within the trial from October 5 till noon on Tuesday.
Ellison and Bankman-Fried dated for a variety of years on and off, she mentioned, including that they initially met whereas she was an intern at quantitative buying and selling agency Jane Road.
Bankman-Fried is on trial for alleged fraud, amongst different prices.
This story is growing. Updates to observe.
