The government’s main witness in the criminal fraud case against the creator of FTX, Sam Bankman-Fried’s former head of his cryptocurrency hedge fund, Caroline Ellison, testified on Tuesday that she and her former employer had misled clients, investors, and lenders.
When Danielle Sassoon, an assistant US attorney, enquired as to whether or not she had broken any laws, Ellison responded, “Yes, we did.” “I mean Sam, myself, and others,”
Ellison then enumerated her offences, “fraud, conspiracy to conduct fraud, and money laundering,” from a courthouse in downtown Manhattan.
Ellison, the owner of Alameda Research, pleaded guilty to two counts of wire fraud, two counts of conspiracy to commit wire fraud, two counts of conspiracy to commit commodities fraud, two counts of conspiracy to commit securities fraud, and two counts of conspiracy to engage money laundering in December. Cooperating with the prosecution’s case against Bankman-Fried was a condition of the 28-year-old’s plea agreement with the government.
Prior to the court’s lunch break, Ellison’s testimony began at 12:37 p.m. and lasted less than 10 minutes. At around 2:00 p.m., it will resume.
Ellison gave a succinct explanation of how she came to know Bankman-Fried while wearing a red dress, a baggy grey blazer, and glasses. They first connected while she was an intern at New York’s Jane Street, a proprietary trading company. She claimed that they later coworked at Alameda and dated for a while.
Source (CNBC)
