In what has been labeled one of the biggest financial frauds in U.S. history, FTX founder Sam Bankman-Fried is set to go on trial this week. Caroline Ellison, Bankman-Fried’s ex-girlfriend and his top lieutenant is expected to be a star witness at the trial.
Ellison has previously admitted that the decision to use customer funds was made by Bankman-Fried. She, along with FTX co-founder Gary Wang and engineering director Nishad Singh, will tell the exchange's behind-the-scenes story, reported The Wall Street Journal.
Ellison and Bankman-Fried met at the trading firm Jane Street Capital and joined Alameda Research as a trader in 2018. Later, she became the co-CEO of Alameda in 2021, sharing her position with Sam Trabucco.
Alameda, one part of Bankman-Fried’s empire, is alleged to have made risky bets using customer deposits from its sister crypto-exchange FTX, leading to a significant monetary loss.
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The prosecutors have accused Bankman-Fried, Ellison, Singh, and Wang of misappropriating over $1 billion between 2020 and 2022. This money was reportedly used for buying luxury real estate, funding pet projects, and financing large loans and bonuses.
While Ellison has pleaded guilty to seven criminal counts and agreed to cooperate with the government, Bankman-Fried has pleaded not guilty. His lawyers argue that the prosecutors haven't conclusively established that Ellison acted at his direction.
The trial, set to begin on Tuesday, will be the first time Ellison has spoken publicly about FTX since its collapse. It is expected to reveal a detailed account of the financial drama that led to the downfall of the crypto empire.
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Photo by Cointelegraph on Wikimedia
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