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☆ Sam Bankman-Fried sought 'justifications' for missing funds, lawyer testifies
▼ + stars: | 2023-10-19 | by ( Luc Cohen | Thomson Reuters | Reports On The New York Federal Courts. Previously Worked As A Correspondent In Venezuela | ) www.reuters.com time to read: +3 min

REUTERS/Andrew Kelly/File Photo Acquire Licensing RightsNEW YORK, Oct 19 (Reuters) - Cryptocurrency exchange FTX's former top lawyer testified on Thursday that its founder Sam Bankman-Fried asked him to come up with "legal justifications" for why it was missing $7 billion in customer funds four days before the company declared bankruptcy. Sun said he told Bankman-Fried later that day that he could not identify any legal justifications. Sun's testimony could complicate Bankman-Fried's defense that he had a good-faith belief that Alameda's use of FTX customer funds was appropriate. They have said Bankman-Fried is considering testifying in his own defense after the prosecution rests its case on Oct. 26. Sun testified earlier on Thursday that Bankman-Fried told him that the company had kept its customer funds safe and separate from its own assets, and that he never approved the lending of FTX customer funds to Alameda Research.

Persons: Sam Bankman, Andrew Kelly, Fried, Apollo, Sun, FTX, Bankman, Danielle Sassoon, Luc Cohen, Will Dunham Organizations: FTX, Manhattan, REUTERS, Alameda Research, Thomson Locations: New York City, U.S, Bankman, Alameda, Manhattan, Bahamas, New York

☆ Read the secret Signal messages that could help put Sam Bankman-Fried behind bars
▼ + stars: | 2023-10-19 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +16 min

Sam Bankman-Fried appears at federal court in New York on Oct. 4, 2023, in this courtroom sketch. Zoom In Icon Arrows pointing outwards Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried. In a direct appeal to Bankman-Fried, Singh wrote on Nov. 6, 2022, "one thing that'd seriously help me is if I didn't have debts." Zoom In Icon Arrows pointing outwards Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried. Zoom In Icon Arrows pointing outwards Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Persons: Sam Bankman, Fried, Claudia Johnson, Caroline Ellison, Gary Wang, Nishad Singh, Ryan Salame, Damian Williams, Yuki Iwamura, Ellison, Bankman, Joe Bankman, Ramnik Arora, Ryne Miller, Constance Wang, Singh, Wang, reassurances, FTX, Changpeng Zhao, he'd, Um, Sam, Binance, Zhao, it's, Sam Trabucco, Ben Xie, Michael Lewis, Lewis, Adam Yedidia, Yedidia, chares, SDNY Singh, Gabe, Salame, Michael Sadowsky, Sadowsky, FTX's, Dawn Giel Organizations: Alameda Research, Stanford, Bloomberg, Getty, Massachusetts Institute of Technology, alameda, Prime Trust Bank Locations: New York, Alameda, Manhattan, U.S, FTX, Sequoia, Alameda's, Bahamas

☆ Judge in Sam Bankman-Fried trial reams out lawyers for having witnesses 'hauled up here' from across the country without much to say
▼ + stars: | 2023-10-18 | by ( Katie Balevic | ) www.businessinsider.com time to read: +3 min

Attorneys in Sam Bankman-Fried's Manhattan trial were chewed out by the judge on Wednesday. Judge Lewis Kaplan lost his patience over two witnesses who gave useless testimony. Kaplan was particularly frustrated that one of the witnesses had traveled from Texas to participate. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . Kaplan's complaints aside, Wednesday was an otherwise efficient trial day, with four witnesses taking the stand in total.

Persons: Sam Bankman, Judge Lewis Kaplan, Kaplan, —, Lewis Kaplan, it's, Bankman, Fried, Eliora Katz, Katz, Cory Gaddis, Gaddis, Peter Easton, University of Notre Dame, Shamel Medrano Organizations: Service, Prosecutors, FTX, Google, University of Notre, US Attorney's Locations: Manhattan, Texas, New York

☆ Sam Bankman-Fried's lawyer says FTX investments were not 'reckless'
▼ + stars: | 2023-10-17 | by ( Luc Cohen | Thomson Reuters | Reports On The New York Federal Courts. Previously Worked As A Correspondent In Venezuela | ) www.reuters.com time to read: +3 min

REUTERS/Eduardo Munoz//File Photo Acquire Licensing RightsNEW YORK, Oct 17 (Reuters) - FTX founder Sam Bankman-Fried's lawyer on Tuesday said the now-bankrupt cryptocurrency exchange's investments were not "reckless and frivolous," pushing back against testimony by a former executive who called its spending on marketing and celebrity endorsements excessive. This is the third week of Bankman-Fried's trial in Manhattan federal court on charges related to the looting billions of dollars in customer funds to make investments, donate to U.S. political campaigns and prop up his hedge fund, Alameda Research. Bankman-Fried, who has pleaded not guilty, has argued that while he made mistakes running FTX, he never intended to steal funds. Jurors have already heard from Gary Wang, FTX's former chief technology officer, and Caroline Ellison, Alameda's onetime chief executive officer and Bankman-Fried's former girlfriend. Reporting by Luc Cohen in New York; Editing by Will DunhamOur Standards: The Thomson Reuters Trust Principles.

Persons: Sam Bankman, Eduardo Munoz, Nishad Singh, Tom Brady, Mark Cohen, Singh, Fried, K5, Cohen, Kendall Jenner's, Gary Wang, FTX's, Caroline Ellison, Alameda's, Luc Cohen, Will Dunham Organizations: REUTERS, Miami Heat, NFL, Defense, Tuesday, K5, Alameda Research, Thomson Locations: New York, U.S, Bankman, Manhattan

☆ 'I'd been suicidal for days': Sam Bankman-Fried lieutenant testifies about immense pressure to keep FTX crypto scam going — before it all crashed
▼ + stars: | 2023-10-17 | by ( Jacob Shamsian | ) www.businessinsider.com time to read: +13 min

He testified at the Sam Bankman-Fried trial that he was 'suicidal' over the crypto scam. AdvertisementAdvertisement"I've always been intimidated by Sam," Singh testified Monday. Before the September 2022 realization that Alameda was taking FTX customer money, Singh had participated in fraudulent activity in other ways. When he returned, the FTX CEO told Singh that he believed he could get $5 billion more in investments, Singh testified. As the chaos continued to roil FTX, Bankman-Fried, Ellison, and other executives pointed fingers at each other while employees and customers demanded answers, Singh said.

Persons: Nishad Singh, Sam Bankman, —, Singh, Gary Wang, Caroline Ellison, Wang, Fried, unsurprised, Ellison —, Ellison, FTX wouldn't, he'd, Gabe Bankman, Adam Yedidia, Singh —, Ryan Salame —, Singh's, Sam, FTX, Mary Altaffer, Anthony Scaramucci, Seth Wenig, Salame —, funneling, Coindesk, FTX —, Binance, Jane Rosenberg Bankman, Bankman, I'd, roil Organizations: Service, Alameda Research, Bankman, Alameda, AP, Democratic, Prosecutors, REUTERS Locations: Alameda, FTX, Bahamas, Manhattan, New York, Bankman

☆ Sam Bankman-Fried directed political donations despite $13 bln 'hole', ex-colleague testified
▼ + stars: | 2023-10-16 | by ( Luc Cohen | Thomson Reuters | Reports On The New York Federal Courts. Previously Worked As A Correspondent In Venezuela | ) www.reuters.com time to read: +5 min

Singh said another FTX executive had told him the deals were meant to help spur user growth. 'I WAS A STRAW DONOR'Bankman-Fried's trial, which started on Oct. 3, has so far focused largely on how prosecutors say Bankman-Fried allowed Alameda to plunder FTX customer funds. Singh gave jurors a window into Bankman-Fried's political operation. He said another FTX executive, Ryan Salame, had access to his bank account to make donations via wire transfers. "I knew that the money for those donations was coming from customer funds."

Persons: Sam Bankman, Andrew Kelly, Fried, Nishad Singh, Bankman, Singh, Tom Brady, Gisele Bundchen, Steph Curry, Larry David, Katy Perry, Orlando Bloom, Michael Kives, Hillary Clinton, FTX, Gary Wang, Caroline Ellison, Alameda's, Gabriel, Gabriel Bankman, Ryan Salame, District Judge Lewis Kaplan, Luc Cohen, Matthew Lewis, Stephen Coates Organizations: FTX, Manhattan, REUTERS, Alameda Research, U.S, Democratic, Prosecutors, Alameda, Miami Heat's, District, Monday, Thomson Locations: New York City, U.S, Alameda, Fried, . U.S, New York

☆ Sam Bankman-Fried jury sees photo of FTX founder with Katy Perry, Orlando Bloom
▼ + stars: | 2023-10-16 | by ( Luc Cohen | Thomson Reuters | Reports On The New York Federal Courts. Previously Worked As A Correspondent In Venezuela | ) www.reuters.com time to read: +4 min

REUTERS/Andrew Kelly/File Photo Acquire Licensing RightsCompanies Champion Trust Llc FollowNEW York, Oct 16 - The jury at Sam Bankman-Fried's fraud trial on Monday saw a photograph of the FTX cryptocurrency exchange founder with singer Katy Perry and actor Orlando Bloom at the 2022 NFL Super Bowl. Singh is the third former member of Bankman-Fried's inner circle to testify at the trial, which started on Oct. 3. Bankman-Fried has pleaded not guilty to two counts of fraud and five counts of conspiracy tied to FTX's November 2022 collapse. Singh said another FTX executive had told him the deals were meant to help spur user growth. Since his trial, Bankman-Fried has been seen during testimony typing on a laptop and whispering to his lawyers.

Persons: Sam Bankman, Andrew Kelly, Katy Perry, Orlando Bloom, Prosecutors, Nishad Singh, FTX's, Singh, Gary Wang, Caroline Ellison, Alameda's, Fried, Perry, Michael Kives, Tom Brady, Gisele Bundchen, Steph Curry, Larry David, District Judge Lewis Kaplan, Kaplan, Luc Cohen, Nick Zieminski Organizations: FTX, Manhattan, REUTERS, Bowl, Alameda, Miami Heat's, District, Bankman, Prosecutors, New York Times, Brooklyn's Metropolitan Detention Center, Thomson Locations: New York City, U.S, Los Angeles, Brooklyn's, New York

☆ Former FTX engineer tells jury about panicky rooftop meeting where he learned how bad things were
▼ + stars: | 2023-10-16 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +5 min

During that exchange, Singh said he learned from Wang that Alameda was borrowing $13 billion from FTX. Singh asked about the size of the shortfall, and Bankman-Fried said that was the wrong question to be asking. After Singh asked if he would finally agree to curb spending, Bankman-Fried said, "Yes, definitely." There, Singh told the jury, he thought he might quit but instead asked Bankman-Fried for a real sense of how things went on the overseas trip. Singh told the jury that he faces a max of 75 years in prison but is "hoping for no jail time."

Persons: Singh, Caroline, Fried, Caroline Ellison, Gary Wang, Nishad Singh, Sam Bankman, Nicolas Roos, I'm, wasn't, Ramnik Arora, Anthony Scaramucci, he'd, Bankman, Dawn Giel Organizations: Alameda, Alameda Research, U.S, Federal Court Locations: Bahamas, Alameda, Wang, Manhattan, FTX, New York City, New York, Bankman

☆ Sam Bankman-Fried trial: scenes from Caroline Ellison's time on the stand
▼ + stars: | 2023-10-12 | by ( Luc Cohen | Thomson Reuters | Reports On The New York Federal Courts. Previously Worked As A Correspondent In Venezuela | ) www.reuters.com time to read: +3 min

Ellison wore a gray blazer and carried a Poland Spring water bottle to and from the witness stand. She did not look at Bankman-Fried in any of the instances when she passed him at the defense table. Bankman-Fried spent much of Ellison's testimony typing on a laptop or whispering to his defense lawyers. Three of the jurors appeared to close their eyes at times as Sassoon quizzed Ellison about spreadsheets showing Alameda's assets and liabilities. Reporting by Luc Cohen in New York; Editing by Noeleen Walder and Matthew LewisOur Standards: The Thomson Reuters Trust Principles.

Persons: Caroline Ellison, Sam Bankman, Ellison, District Judge Lewis Kaplan's, Fried, Kaplan, Joseph Bankman, Barbara Fried, Danielle Sassoon, Sassoon quizzed Ellison, We'll, " Sassoon, Luc Cohen, Noeleen Walder, Matthew Lewis Organizations: Alameda, Federal Court, Reuters, Alameda Research, District, The Stanford University, Stanford Law, Thomson Locations: New York City, U.S, Alameda, New York

Sam Bankman-Fried laughed and shook his head during Caroline Ellison's testimony, prosecutor claims. The prosecutor asked Bankman-Fried's lawyer to tell his client to control his reactions. Ellison gave emotional testimony Wednesday and appeared to place the blame for FTX's collapse on SBF. AdvertisementAdvertisementCaroline Ellison's testimony provoked a series of reactions from her ex-boyfriend Sam Bankman-Fried on Wednesday, a prosecutor said during a sidebar conversation. Prosecutor Danielle Sassoon told the judge in Bankman-Fried's criminal trial that the FTX cofounder had "laughed, visibly shaken his head, and scoffed" while Ellison testified.

Persons: Sam Bankman, Fried, Caroline Ellison's, Bankman, Ellison, —, Danielle Sassoon, Judge Lewis Kaplan, Mark Cohen, " Sassoon, Cohen, Lewis, he'd, he's Organizations: Service, Alameda Research Locations: Bankman, Manhattan

☆ Caroline Ellison says she wasn't an ambitious person until she met Sam Bankman-Fried
▼ + stars: | 2023-10-12 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +3 min

Caroline Ellison, former chief executive officer of Alameda Research LLC, arrives to court in New York, US, on Thursday, Oct. 12, 2023. Ellison, ex-girlfriend of FTX co-founder Sam Bankman-Fried, outlined for a New York jury Wednesday how she worked with Sam Bankman-Fried to deceive lenders and customers to build his multi-billion dollar cryptocurrency empire, and their failed attempts to prevent a spectacular collapse. She pleaded guilty in December to two counts of wire fraud, two counts of conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering. By 2021, she testified, Bankman-Fried had largely stopped coming into the Alameda office and had left more of the job to Ellison. Ellison also testified that Bankman-Fried had discussed adding a new co-CEO when Trabucco left, but she resisted.

Persons: Caroline Ellison, Ellison, FTX, Sam Bankman, Stephanie Keith, Mark Cohen, Lewis Kaplan, Cohen, Sam Trabucco, Alameda's, Trabucco, Fried, Ryan Salame, Ellison's Organizations: Alameda Research, New, Bloomberg, Getty, FTX Locations: New York, Manhattan, Alameda

☆ Secret recording of Caroline Ellison meeting with Alameda staff exposed in SBF criminal trial
▼ + stars: | 2023-10-12 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +3 min

Caroline Ellison, former chief executive officer of Alameda Research LLC, leaves Manhattan Federal Court after testifying during the trial of FTX CEO Sam Bankman-Fried, on October 10, 2023 in New York City. Rick Best, a trader who had joined Alameda just days earlier, was directly to Ellison's right and secretly recording the meeting as audio. "Alameda borrowed a bunch of money," which it used to make investments, Ellison said on the recording. At one point on the recording, Ellison giggled. "FTX basically always allowed Alameda to, like, borrow user funds, as far as I know" she said on the recording.

Persons: Caroline Ellison, Sam Bankman, Christian Drappi, Drappi, He's, Rick Best, Ellison, FTX, Ellison giggled, Um, Sam Organizations: Alameda Research, Bankman Locations: Manhattan, New York City, Hong Kong, Alameda, Bahamas, FTX, YOLO

Bankman-Fried has pleaded not guilty to charges of stealing billions of dollars from customers at his now-defunct FTX cryptocurrency exchange. "He didn't think rules like 'don't lie' or 'don't steal' fit in to that framework," said Ellison, who ran Bankman-Fried's crypto-focused hedge fund Alameda Research. Ellison said Bankman-Fried asked her to falsify Alameda's financial statements to keep lenders at bay amid a downturn in cryptocurrency markets in 2022. BANKMAN-FRIED THOUGHT HE COULD BECOME U.S. PRESIDENTBankman-Fried was "very ambitious," Ellison said, adding that he "thought there was a 5% chance he would become president some day." Prosecutors have said that Bankman-Fried used customer funds as he pleased, and that the resulting shortfall caused FTX's collapse.

Persons: Caroline Ellison, Sam Bankman, Fried, Ellison, Bankman, Prosecutors, ELLISON Ellison, Jody Godoy, Luc Cohen, Noeleen Walder, Matthew Lewis Organizations: Alameda, Federal Court, Reuters, REUTERS Acquire, Alameda Research, Toyota Corolla, Prosecutors, Thomson Locations: New York City, U.S, Alameda, Bahamas, FTX, Binance, China, New York

☆ CNBC Daily Open: Investors flocked to U.S. Treasurys for safety
▼ + stars: | 2023-10-11 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Markets continued rallyingU.S. stocks rose Tuesday, boosted by falling Treasury yields and easing oil prices. Alameda allegedly took FTX moneyCaroline Ellison, the former head of Alameda Research and ex-girlfriend of FTX founder Sam Bankman-Fried, took the stand as the government's star witness Tuesday. After screening for such stocks, CNBC Pro found 10 with dividend yield above 4% and a debt-to-capital ratio of less than 80%, among other criteria.

Persons: That's, Caroline Ellison, Sam Bankman, Ellison, Sam Organizations: CNBC, Samsung Electronics, UBS, Alameda Research, CNBC Pro Locations: Asia, Pacific, China, Alameda, Israel

☆ Caroline Ellison believed Sam Bankman-Fried directed $100 million bribe to Chinese officials
▼ + stars: | 2023-10-11 | by ( Jacob Shamsian | Katie Balevic | ) www.businessinsider.com time to read: +6 min

Caroline Ellison testified that Sam Bankman-Fried paid millions in bribes to Chinese officials. AdvertisementAdvertisementCaroline Ellison testified at Sam Bankman-Fried's criminal trial Wednesday that she believed the disgraced crypto mogul paid "in the ballpark of $100 million" in bribes to Chinese government officials. When Alameda paid what I believe was a large bribe to Chinese government officials to get our accounts unlocked," Ellison said. AdvertisementAdvertisement"My impression is that they were unfrozen by paying a bribe," Ellison testified Wednesday. In it, Ellison listed "$150 million for the thing" among other big events for Alameda Research in 2021.

Persons: Caroline Ellison, Sam Bankman, Fried, Ellison, —, Danielle Sassoon, David Ma, Ma, commingling, Lewis Kaplan, Kaplan Organizations: Service, Alameda Research, Alameda, Prosecutors, Bankman Locations: Alameda, China, Manhattan, California

☆ CNBC Daily Open: U.S. Treasurys shine as safe havens
▼ + stars: | 2023-10-11 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. That's a staggering plunge of 78.7% year over year, dragged down by the firm's semiconductor business, which is expected to post a loss of more than 3 trillion won for the quarter. Alameda allegedly took FTX moneyCaroline Ellison, the former head of Alameda Research and ex-girlfriend of FTX founder Sam Bankman-Fried, took the stand as the government's star witness Tuesday. But when it hits, the stock market will probably slump about 12%, the founder and chief investment officer of Tudor Investment told CNBC.

Persons: That's, Caroline Ellison, Sam Bankman, Ellison, Sam, Paul Tudor Jones Organizations: CNBC, Samsung Electronics, Samsung, International Monetary Fund, IMF, Alameda Research, Tudor Investment Locations: Finland, Estonia, U.S, Alameda

Eventually, according to Ellison, Bankman-Fried chose the one that omitted a line saying "FTX borrows," hiding $10 billion in borrowed customer money. When asked by Sassoon why she continued with the scheme, Ellison said, "Sam told me to." She said Bankman-Fried told her she should have hedged and, "speaking loudly and strongly," said it was her fault. CEO Sam Bankman-Fried Bloomberg | Bloomberg | Getty ImagesEllison then went into her own emotional state. After all the movement of FTX money, the company only had $4 billion to cover $12 billion in customer holdings, she said.

Persons: Caroline Ellison, Yuki Iwamura, Sam Bankman, Saudi Crown Prince Mohammed bin Salman, Ellison, Fried, Danielle Sassoon, Genesis, Gary Wang, Nishad Singh, Bankman, FTX, Mark Cohen, District Judge Lewis Kaplan, Jane Rosenberg, Sassoon, Sam, Mohammed bin Salman, Jane Street, Slack, she'd, who'd, sloppily Organizations: Alameda Research, Bloomberg, Getty, Saudi Crown, U.S, District, Federal Court, Reuters, Stanford, Bankman, Wall, Alameda, New York Times, MBS, Vox, Forbes, Twitter, Toyota Corolla, Fried Bloomberg Locations: New York, Bankman, Alameda, FTX, New York City, U.S, San Francisco Bay, Saudi, Japan

Caroline Ellison got into the wrong car as she departed from the courthouse on Tuesday. A picture from the scene shows her shocked and panicked expression as she realized her mistake. The blunder illustrates the media circus around Sam Bankman-Fried's criminal trial. AdvertisementAdvertisementCaroline Ellison has had a chaotic few days since she began testifying in the criminal trial of her ex-boyfriend Sam Bankman-Fried. A picture from the scene shows Ellison's seemingly panicked expression as she realized she'd gotten into the wrong vehicle.

Persons: Caroline Ellison, Sam Bankman, —, Ellison, she'd, Ellison's, Eduardo Munoz Alvarez, Fried Organizations: Service, InnerCity Press, Alameda Research, Prosecutors Locations: Manhattan

NEW YORK (AP) — Sam Bankman-Fried ’s former top executive blamed the FTX founder on Wednesday of corrupting her values so she could lie and steal and create false balance sheets, things she told jurors at his New York City trial that she never imagined doing before joining his cryptocurrency empire. “I think it made me more willing to do things like lie and steal over time,” she said. She said she once created seven different balance sheets after Bankman-Fried directed her to find ways to conceal things that might look bad to Alameda's lenders. “I didn’t really want to be dishonest, but I also didn’t want them to know the truth,” Ellison said. ___For more AP coverage of Sam Bankman-Fried and FTX: https://apnews.com/hub/sam-bankman-fried

Persons: Sam Bankman, Caroline Ellison, Fried, Danielle Sassoon, Ellison, “, ”, ” Ellison, couldn't, FTX, Palo, Judge Lewis A, Kaplan, ___ Organizations: New, New York City, Bankman, Alameda Research, U.S, Alameda, “ Locations: New York, Manhattan, FTX, Alameda, United States, Bahamas, Palo Alto , California

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCaroline Ellison recounts 'constant state of dread' over Alameda's mounting debts: CNBC Crypto WorldCNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what's ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today's show, Josh Frank of The Tie reacts to the latest testimony from Caroline Ellison in the trial of Sam Bankman-Fried.

Persons: Caroline Ellison, explainers, Josh Frank, Sam Bankman Organizations: CNBC Crypto, CNBC

☆ Caroline Ellison 'freaked out' when the crypto market crashed as she realized Alameda owed billions to lenders
▼ + stars: | 2023-10-11 | by ( Katie Balevic | Jacob Shamsian | ) www.businessinsider.com time to read: +3 min

Bankman-Fried directed Ellison to find "alternative ways" to present troubling finances to lenders. Around May 2022, as Alameda continued to borrow from FTX, Ellison said the cryptocurrency market experienced a downturn, as did Alameda's assets. Despite the troubling outlook, Ellison said, Bankman-Fried directed her to continue using FTX customer's assets and other liquid assets to repay Alameda's lenders. Despite her concerns, Bankman-Fried "continued to direct me to repay the loans" that Alameda owed to lenders, Ellison said. When pressed, she added that she "understood that to mean he was telling me to use Alameda's line of credit at FTX."

Persons: Caroline Ellison, Sam Bankman, Fried, Ellison, —, Sam, FTX, messaged Ellison Organizations: Service, Alameda Research, Alameda Locations: Manhattan, Alameda, Ellison

Former crypto hedge fund Alameda Research CEO Caroline Ellison finds and points out Sam Bankman-Fried during Bankman-Fried's fraud trial over the collapse of FTX, the bankrupt cryptocurrency exchange, at Federal Court in New York City, U.S., October 10, 2023, in this courtroom sketch. REUTERS/Jane Rosenberg/File Photo Acquire Licensing RightsCompanies Champion Trust Llc FollowNEW YORK, Oct 11 (Reuters) - Caroline Ellison, the former co-head of Sam Bankman-Fried's hedge fund and a pivotal witness in his trial on fraud charges tied to the collapse of his FTX cryptocurrency exchange, is scheduled to retake the stand on Wednesday morning. Ellison, the former co-chief executive of Alameda Research, testified on Tuesday that she was part of a multibillion-dollar conspiracy led by Bankman-Fried to defraud FTX customers, investors and lenders. Ellison said the hedge fund took about $10 billion in FTX customer funds to repay its debts and make investments. A third cooperating witness, former FTX engineering chief Nishad Singh, is also expected to testify at the trial, which could last up to six weeks.

Persons: Caroline Ellison, Sam Bankman, Jane Rosenberg, Ellison, FTX, Bankman, shrugged, Fried, Mark Cohen, Gary Wang, Nishad Singh, Jody Godoy, Luc Cohen, Noeleen Walder, Matthew Lewis Organizations: Alameda, Federal Court, REUTERS, Alameda Research, Bankman, Manhattan U.S, Stanford University, Prosecutors, Thomson Locations: FTX, New York City, U.S, Alameda, New York

Ellison said the hedge fund, Alameda Research, took about $10 billion in FTX customer funds to repay its debts and make investments. Gary Wang, FTX's former technology chief, testified that Bankman-Fried falsely tweeted that FTX was "fine" in November as the exchange faced surging demand for withdrawals. Bankman-Fried left in 2017 to found Alameda, and Ellison followed when he offered her a job as a trader. "He was very ambitious," Ellison told the court. In testimony that could undermine that argument, Ellison said she always consulted Bankman-Fried on big decisions and always deferred to him.

Persons: Sam Bankman, Eduardo Munoz, Caroline Ellison, Ellison, FTX, Fried, Mark Cohen, Gary Wang, Nishad Singh, Bankman, Jane, Joe Biden's, Cohen, District Judge Lewis Kaplan, Luc Cohen, Jody Godoy, Noeleen Walder, Nick Zieminski, Matthew Lewis Organizations: REUTERS, Alameda Research, Manhattan U.S, Prosecutors, Alameda, Bankman, Wall, Ellison, New York Times, Times, District, Thomson Locations: New York, U.S, Alameda, FTX

In the memo, Bankman-Fried called Alameda's failure to hedge its bets a "mistake." When Everdell asked if the decision not to hedge was Ellison's, Wang replied that she was Alameda's CEO at the time. Prosecutors said last week they planned to call Ellison to take the stand once Wang finishes his testimony. She was seen entering the courthouse on Tuesday morning wearing a blue baseball cap and sunglasses, and carrying a blue thermos. A third former member of Bankman-Fried's inner circle, ex-FTX engineering chief Nishad Singh, is also expected to testify at trial.

Persons: Sam Bankman, Eduardo Munoz, Caroline Ellison, Christian Everdell's, Gary Wang, Everdell, Wang, Ellison, Prosecutors, Fried, District Judge Lewis Kaplan, Nishad Singh, FTX, Christian Everdell, Mark Cohen, Luc Cohen, Jody Godoy, Noeleen Walder, Matthew Lewis, Nick Zieminski Organizations: REUTERS, Alameda Research, New York Times, U.S, District, Brooklyn's Metropolitan Detention Center, Bankman, Alameda, Thomson Locations: New York, U.S, Manhattan, Brooklyn's, Alameda, Washington ,

☆ Sam Bankman-Fried's risk appetite was so large that he would flip a coin if losing meant destroying the world, Caroline Ellison testified
▼ + stars: | 2023-10-10 | by ( Jacob Shamsian | ) www.businessinsider.com time to read: +5 min

Sam Bankman-Fried said he was willing to destroy the world with a coin flip, Caroline Ellison said. Sam Bankman-Fried said he would flip the coin — and urged everyone else to do so, too, Caroline Ellison testified in court Tuesday. Aside from customer funds, Ellison testified in federal court on Tuesday, Alameda made its crypto bets using money from loans. Ellison testified about a point in time in 2021 when Bankman-Fried wanted to spend $3 billion on venture investments. In addition, she said, Alameda Research already had around $2.7 billion in liabilities at the time.

Persons: Sam Bankman, Fried, Caroline Ellison, SBF, —, Ellison, Genesis —, Ellison —, Mark Cohen Organizations: Service, Alameda Research Locations: Alameda, FTX

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