- Former Alameda CEO Caroline Ellison confessed to committing criminal fraud charges alongside Sam Bankman-Fried.
- Ellison disclosed how Alameda defrauded FTX customers, FTX investors, and Alameda lenders.
- According to Ellison, SBF proposed using the customers’ money to pay back Alameda’s loans.
Following the ongoing legal case of Sam Bankman-Fried, on day five of the trial, Caroline Ellison, former CEO of Alameda Research and SBF’s former partner, testified against him. Ellison’s trial followed Gary Wang, co-founder of FTX and Alameda Research, and he pleaded guilty to the financial crimes.
Ellison pleaded guilty to federal criminal fraud charges in December 2022 and is one of the key players to testify against SBF. At the beginning of the trial, when asked about the crimes she committed, she said, “Fraud, conspiracy to commit fraud, and money laundering.” Moreover, Ellison shared that she committed those crimes with Bankman-Fried, and they defrauded FTX customers, FTX investors, and Alameda lenders.
Ellison shared that some of the way Alameda was about to steal customer money was through access to an unlimited line of credit on FTX. She added that…
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