Sam Bankman-Fried Accused by Ex-Girlfriend of Directing Fraud

Thedailycourierng

Sam Bankman-Fried Accused: In a stunning revelation, Caroline Ellison, the ex-girlfriend of Sam Bankman-Fried, the founder of crypto exchange FTX, has accused him of leading her to commit fraud. This allegation has surfaced during the ongoing trial of Mr. Bankman-Fried, who is facing charges of fraud and money laundering.

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The Risky Strategy and the Downfall of FTX

Caroline Ellison, during her testimony, unveiled how her ex-boyfriend, Mr. Bankman-Fried, directed a risky strategy that heavily relied on the support of FTX deposits. FTX was once a global crypto trading platform, but it went bankrupt in November, leaving over $8 billion unaccounted for. Prosecutors argue that the platform’s collapse was a result of Mr. Bankman-Fried’s alleged embezzlement of billions in customer funds.

Allegations of Fund Misappropriation

Ellison’s testimony further detailed that Bankman-Fried instructed her to falsify Alameda Research’s balance sheets to mislead lenders, particularly during a cryptocurrency market downturn in 2022. According to her, he set up systems allowing Alameda to use customer funds to repay loans. This controversial strategy also involved providing loans to FTX executives and purchasing digital currencies to artificially support their values, even when it resulted in losses for Alameda.

Directing Criminal Activities

During her testimony, Ellison explicitly claimed that Mr. Bankman-Fried was the driving force behind these alleged illegal activities. She stated that “He directed me to commit these crimes,” emphasizing his direct involvement in orchestrating fraudulent practices.

Ellison shared her relief at no longer having to lie and expressed her former partner’s deviation from principles such as “don’t lie” and “don’t steal.” She described Bankman-Fried as a “utilitarian” who believed in achieving the greatest good for the greatest number, irrespective of ethical boundaries.

Cooperation and Legal Ramifications

It is worth noting that Caroline Ellison, along with two other former members of Bankman-Fried’s inner circle, has pleaded guilty to fraud charges. They have also committed to cooperating with the Manhattan US attorney general’s office.

In contrast, Sam Bankman-Fried has entered a not-guilty plea to two counts of fraud and five counts of conspiracy. He asserts that while he may have made mistakes in managing FTX, he never had any intention to steal funds.

Sam Bankman-Fried Accused As the trial unfolds, these allegations will be carefully examined, shedding light on one of the most significant legal battles in the cryptocurrency world. The outcome may have far-reaching implications for the crypto industry and the responsibilities of platform founders and CEOs. Source thedailycourierng news

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