1 billion blocked in China! Digging without ever finding the bottom could serve as a definition to the current course of the Sam Bankman-Fried trial. For every time a sulphurous revelation shocks the audience, another, even more improbable statement leaves everyone speechless. Yesterday it was the turn of Caroline Ellisonformer CEO of Alameda Research and occasional girlfriend of the accused, to continue her questioning. A long-awaited intervention. This was due to its central role in this fraud nebula built around the FTX platform. A witness who, in his own words, « didn’t want to be dishonest, but… ».
FTX’s coffers were missing $10 billion
This second day of the Sam Bankman-Fried trial therefore concerns the continuation of Caroline Ellison’s testimony. An intervention whose importance can be measured in terms of the willingness of the accused’s lawyers to charge the latter as much as possible from the very first days of the hearing. This was undoubtedly an attempt to discredit the woman who was closest to the suspect’s actions.former CEO of the FTX platform.
Indeed, since the arrival of Caroline Ellison at the helm, one revelation follows another at the speed of the questions asked by Danielle Sassoon, a representative of the Manhattan U.S. Attorney’s Office. In the course of this exchange, we learn that the young woman was « stressed » of the situation visibly imposed by an all-powerful Sam Bankman-Fried.
And with good reason. After all, the FTX platform must have had $13 billion in USD value deposited by its customers. Yet Caroline Ellison explains that » only $3 billion was available « . Indeed, the missing $10 billion had simply been « borrowed by Alameda ».
Prosecutor: Did you think it was wrong?
Ellison: Yes, I thought it was wrong. We didn’t find new sources of capital. I kept worrying that FTX customers would find out and try to pull out all at once.Source: Inner City Press
And what can we say about the 7 different (false) balance sheets written by Caroline Ellison. These, for the attention of the Genesis company which was concerned about its $400 million loan. A selection from which Sam Bankman-Fried will select version number 7. In other words, the » without disclosure of the $10 billion owed to FTX customers « .
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A $150 million bribe to China
But in the end, the most shocking revelations are those that are not retained in the context of this trial. For example Sam Bankman-Fried’s illegal campaign financing strategy. An operation carried out with bribes in order to buy the good graces of senior U.S. officials. But also to block Donal Trump’s path to power…
Practices about which a new episode worthy of a spy series has just been unearthed by Caroline Ellison. It’s about a $150 million bribe paid to China. The reason given? The blocking by the Chinese authorities ofone billion dollars belonging to the company in connection with money laundering proceedings. Internal code name: « the thing!
Ellison: When we paid a large bribe to China, our accounts were frozen as part of a money laundering investigation.
Prosecutor: How much money was frozen in China?
Ellison: A billion dollars. Sam wanted to find solutions.
Prosecutor: How were they released?
Ellison: Alameda paid a bribe to Chinese officials.
The extent of the fraud perpetrated with full knowledge of the facts in the FTX affair is truly perplexing. With practices such as Alameda’s ability to print dollars ad infinitum. All these revelations make ex-customers who simply want to to review at least part of their funds stolen.
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