(New York) The former girlfriend of ex-cryptocurrency superstar Sam Bankman-Fried arrived at Manhattan federal court on Tuesday where she is due to testify during the day, her hearing being considered the main highlight of the trial.
Caroline Ellison is the former head of the hedge fund Alameda Research, whose activities were largely financed by money from customers of the cryptocurrency exchange FTX, without their knowledge.
Founded in 2019, FTX filed for bankruptcy in November 2022 after many customers, learning that their funds had been used in this way, sought to recoup their stake. After the bankruptcy, some eight billion dollars were missing.
Sam Bankman-Fried is accused of having set up this system of communicating vessels between FTX and Alameda, while concealing it from the platform’s clients, investors and creditors.
PHOTO SETH WENIG, ASSOCIATED PRESS
Sam Bankman-Fried
Since the bankruptcy, “SBF” has regularly accused Caroline Ellison, with whom he had a romantic relationship, of faults and negligence in the management of Alameda.
He assured that he no longer followed the daily activities or the financial situation of Alameda during the last months preceding the failure of FTX, relying on his boss, even if he was still the majority shareholder.
But during his hearing Friday, FTX co-founder Zixiao “Gary” Wang maintained that Sam Bankman-Fried continued to closely monitor the operations of Alameda until the bankruptcy filing.
Aged 28, Caroline Ellison pleaded guilty to seven counts in December and agreed to collaborate, like Gary Wang, with the services of Manhattan federal prosecutor Damian Williams.
Tuesday morning began with the cross-examination of Gary Wang by the defense, which precedes the intervention of Caroline Ellison.
Also charged with seven counts, Sam Bankman-Fried faces more than 100 years in prison if convicted.