As the key witness for the prosecution: Ex-girlfriend seriously incriminates FTX founder in court

As a key witness for the prosecution
Ex-girlfriend weighs heavily on FTX founder in court

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He was once considered a crypto prodigy, but FTX founder Sam Bankman-Fried is now facing life imprisonment. His ex-girlfriend and former business partner testified in the fraud trial – and made serious accusations against the 31-year-old as a key witness.

The ex-girlfriend and former business partner of crypto entrepreneur Sam Bankman-Fried, who was accused of fraud, has heavily incriminated the 31-year-old in court. Caroline Ellison told a federal court in New York that she and Bankman-Fried embezzled “approximately $14 billion” (around 13.3 billion euros) from customers of the cryptocurrency platform FTX. At the time, Bankman-Fried instructed them to “commit these crimes.”

The entrepreneur, who was once celebrated as a crypto prodigy, “set up the system” through which customer money from FTX flowed into his crypto investment fund Alameda Research, said the former head of Alameda and current key witness for the prosecution. The money was used “for investments and to repay debts”. The world’s second largest crypto exchange at the time, FTX, went bankrupt last November, triggering an earthquake in the crypto world.

Bankman-Fried – nicknamed “SBF” – had previously embodied the rise of cryptocurrencies into a supposedly serious investment like no other. However, the business structure collapsed when it became known that FTX was partly using customer funds to support the crypto investment fund Alameda Research, also founded by Bankman-Fried, which sometimes made high-risk investments. Investors withdrew their funds in panic, leading to FTX’s bankruptcy. In the end, around $8.7 billion was missing.

Bankman-Fried was later arrested in the Bahamas and extradited to the United States. He has to stand trial for fraud. His ex-girlfriend Ellison pleaded guilty to two counts of fraud during the investigation and is cooperating with prosecutors.

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