As the Sam Bankman-Fried FTX fraud trial enters its second week, key witnesses, including former partner and CEO of Alameda Research Caroline Ellison, are expected to provide testimony. The trial revolves around allegations of fraud and conspiracy related to the collapse of FTX. This article provides an overview of what to expect in the second week of the trial.
Testimony from Caroline Ellison
Caroline Ellison, the former romantic partner of Sam Bankman-Fried (SBF) and CEO of FTX-tied Alameda Research, is set to testify in the upcoming week. Ellison’s testimony is anticipated to shed light on the movement of customer funds between the two companies. She is also expected to recount a November 2022 meeting where she admitted to using customer funds to repay creditors with Bankman-Fried’s approval.
Guilty Pleas and Testimony from Gary Wang:
In December 2022, both Caroline Ellison and former FTX executive Gary Wang pleaded guilty for their involvement in the alleged fraud that contributed to the collapse of FTX. During his testimony in the trial, Wang indicated that Bankman-Fried allowed Alameda Research to withdraw unlimited funds. He also stated that Bankman-Fried was responsible for front-end work, including media lobbying and investor relations, while Wang handled coding and any disagreements were ultimately decided by Bankman-Fried.
The first week of the trial centered on the disappearance of 8 billion worth of FTX customer funds. Additionally, testimony from Adam Yedidia, a close friend of Bankman-Fried and a former developer at FTX, was heard. This upcoming week is likely to further delve into the details surrounding the movement and handling of customer funds.
The second week of the SBF Sam Bankman-Fried FTX fraud trial will witness crucial testimonies, including that of Caroline Ellison, shedding more light on the alleged fraudulent activities that led to the collapse of FTX. As the trial progresses, developments in the case will be closely watched by industry insiders and observers.