The second week of Sam Bankman-Fried’s felony trial concluded with BlockFi CEO blaming FTX and Alameda for its chapter.
FTX founder Sam Bankman-Fried’s historic trial noticed the tip of its second week at this time. All through this week, the most important key witness was Caroline Ellison, former CEO of Alameda Analysis and ex-girlfriend of SBF.
Ellison testified how Alameda was allowed to take limitless loans from FTX’s buyer funds, how Bankman-Fried used funds for political donations, his failed pursuit of Saudi funding and the way he bribed Chinese language officers.
Yesterday, Zac Prince, former CEO of bankrupt crypto alternate BlockFi, took the stand and said that his firm was pressured out of business by FTX and Alameda. Right now he continued to share the main points in his testimony to the prosecutor.
Testimony of Zac Prince, Founder and CEO at BlockFi
- BlockFi was lending out round $5 to $10 billion {dollars} throughout the trade.
- BlockFi lent $1.1 billion to Alameda by Might 2022.
- After Terra LUNA collapsed, 3AC defaulted to BlockFi, whereas Voyager and Celcius went bankrupt. It precipitated important losses for BlockFi.
- BlockFi needed to promote itself to FTX to herald further capital and increase buyer confidence.
- FTX provided a $400 million credit score, with plans to totally purchase BlockFi by July 2023.
- BlockFI lent $850 million to Alameda between July to November 2022.
- Prince says that BlockFi wouldn’t have prolonged loans to Alameda if he had identified in regards to the inner loans between Alameda and FTX.
- When the FTT token dropped, BlockFi known as again some loans, however there have been nonetheless $650 million excellent.
- BlockFi had $1.1 billion on the FTX alternate when it declared chapter.
- Zac Prince states that BlockFi was pressured out of business due to FTX and Alameda.
Prosecutors state that former co-lead engineer of FTX Nishad Singh will take the stand on Monday.