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Caroline Ellison, the ex-CEO of Alameda Research, took the stand because the fifth witness for the prosecution in Sam Bankman-Fried’s six-week trial, claiming that the previous FTX CEO directed her to commit fraud and cash laundering crimes.
Ellison added that whereas she ran Alameda, she took a number of billion {dollars} from clients to put money into different tasks and repay money owed to lenders via an “essentially unlimited line of credit.”
Alameda took $14 billion in whole from clients, however “some we were able to pay back,” Ellison testified. She additionally stated she despatched modified steadiness sheets to traders and lenders on the route of Bankman-Fried so Alameda Research may “look less risky than it was.”
Ellison has pleaded responsible to a number of prices and accepted plea agreements, alongside Gary Wang, co-founder and CTO of FTX, and Nishad Singh, director of engineering at FTX. Wang testified within the trial from October 5 till noon on Tuesday.
Ellison and Bankman-Fried dated for a lot of years on and off, she stated, including that they initially met whereas she was an intern at quantitative buying and selling agency, Jane Street.
Bankman-Fried is on trial for alleged fraud, amongst different prices.
This story is creating. Updates to observe.