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FTX founder Sam Bankman-Fried hoped to be US president someday: Star witness Caroline Ellison – Times of India
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NEW YORK: Caroline Ellison, the former CEO of Sam Bankman-Fried’s hedge fund, testified on Tuesday that the ex-crypto mogul instructed her and others to defraud FTX exchange customers by taking their money without their knowledge. Ellison, who had a previous romantic relationship with Bankman-Fried, portrayed him as an ambitious individual unhesitant about sharing misleading financial information with lenders. She revealed Bankman-Fried’s obsession with a rivalry against Binance and his belief that he could become the US president.
During the New York City trial, while Bankman-Fried observed from his courtroom seat, Ellison, aged 28, revealed her involvement in fraud, conspiracy to commit fraud, and money laundering alongside Bankman-Fried and others. Together, they orchestrated schemes to siphon funds from customers and investors of FTX, a company initiated by Bankman-Fried, as well as from lenders to his hedge fund, Alameda Research.
Ellison explicitly said that Bankman-Fried was the mastermind behind these illicit activities. She emphasized that he was the driving force behind the major financial decisions in his companies, to the extent that bitcoins he generated were sometimes referred to as “Sam’s coins.”
She portrayed him as exceedingly ambitious, envisioning himself leading large corporations and wielding significant influence, especially in politics. According to Ellison, Bankman-Fried even believed there was a 5% chance he might one day become the President of the United States.
“When you say president, what are you referring to?” asked assistant US attorney Danielle Sassoon. “Of the United States,” Ellison answered.
According to Ellison, the hedge fund Alameda Research took around $10 billion in FTX customer funds to settle debts and make investments. This money was acquired through a $65 billion line of credit on the exchange and funds deposited by FTX customers into an Alameda bank account when FTX lacked its own account. Ellison stated that Bankman-Fried set up systems that allowed Alameda to take this money and directed them to use customer funds to repay loans.
Ellison’s testimony was highly anticipated, as she is one of three former close associates of Bankman-Fried who pleaded guilty to fraud charges and agreed to cooperate with the Manhattan US Attorney’s office. Prosecutors allege that Bankman-Fried misappropriated billions in customer funds to support Alameda, buy real estate, and donate large sums to US political campaigns before FTX declared bankruptcy in November 2022, leading to shockwaves in financial markets and damaging his reputation.
Bankman-Fried, who faces charges of fraud and conspiracy, maintains his innocence, acknowledging mistakes in managing FTX but denying any intention to steal funds. His defense argues that cooperating witnesses like Ellison may be distorting old decisions with a negative spin. The trial, which could last up to six weeks, also includes testimonies from other key witnesses, including FTX’s former technology chief Gary Wang and former FTX engineering chief Nishad Singh.
(With inputs from agencies)
During the New York City trial, while Bankman-Fried observed from his courtroom seat, Ellison, aged 28, revealed her involvement in fraud, conspiracy to commit fraud, and money laundering alongside Bankman-Fried and others. Together, they orchestrated schemes to siphon funds from customers and investors of FTX, a company initiated by Bankman-Fried, as well as from lenders to his hedge fund, Alameda Research.
Ellison explicitly said that Bankman-Fried was the mastermind behind these illicit activities. She emphasized that he was the driving force behind the major financial decisions in his companies, to the extent that bitcoins he generated were sometimes referred to as “Sam’s coins.”
She portrayed him as exceedingly ambitious, envisioning himself leading large corporations and wielding significant influence, especially in politics. According to Ellison, Bankman-Fried even believed there was a 5% chance he might one day become the President of the United States.
“When you say president, what are you referring to?” asked assistant US attorney Danielle Sassoon. “Of the United States,” Ellison answered.
According to Ellison, the hedge fund Alameda Research took around $10 billion in FTX customer funds to settle debts and make investments. This money was acquired through a $65 billion line of credit on the exchange and funds deposited by FTX customers into an Alameda bank account when FTX lacked its own account. Ellison stated that Bankman-Fried set up systems that allowed Alameda to take this money and directed them to use customer funds to repay loans.
Ellison’s testimony was highly anticipated, as she is one of three former close associates of Bankman-Fried who pleaded guilty to fraud charges and agreed to cooperate with the Manhattan US Attorney’s office. Prosecutors allege that Bankman-Fried misappropriated billions in customer funds to support Alameda, buy real estate, and donate large sums to US political campaigns before FTX declared bankruptcy in November 2022, leading to shockwaves in financial markets and damaging his reputation.
Bankman-Fried, who faces charges of fraud and conspiracy, maintains his innocence, acknowledging mistakes in managing FTX but denying any intention to steal funds. His defense argues that cooperating witnesses like Ellison may be distorting old decisions with a negative spin. The trial, which could last up to six weeks, also includes testimonies from other key witnesses, including FTX’s former technology chief Gary Wang and former FTX engineering chief Nishad Singh.
(With inputs from agencies)
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