FTX founder
SBF’s ex-girlfriend has to be cross-examined
October 12, 2023, 4:55 p.m
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In the case against the former crypto prodigy Sam Bankman-Fried, his former partner Caroline Ellison has already placed heavy burdens on the founder of the collapsed crypto exchange. As the main witness, the court wants to put the 28-year-old particularly under pressure.
In the fraud case against the founder of the collapsed crypto exchange FTX, one of the main witnesses has to face cross-examination. One of the questions that will be discussed is why Caroline Ellison is testifying against her former partner Sam Bankman-Fried.
The former head of his brokerage firm Alameda had accused him in the proceedings before a New York court, among other things, of pressuring her to present a misleading Alameda balance sheet to lenders. She confessed through tears that she lived in constant fear that the truth would one day come out.
The FTX bankruptcy was a weight off her mind. “I felt a relief that I didn’t have to lie anymore.” Ellison also described Bankman-Fried as someone who lived by his own rules. He sees himself as a “utilitarian” who strives to do the greatest possible good for the greatest number of people. “He didn’t think that rules like ‘Thou shalt not lie’ or ‘Thou shalt not steal’ fit into this framework.”
Before Ellison, former FTX technical director and co-founder Gary Wang had already weighed in on Bankman-Fried. Nishad Singh is also expected to testify as a third former confidant in the course of the proceedings. Ellison, Wang and Singh pleaded guilty at a hearing and said they would cooperate with prosecutors.
According to prosecutors, Bankman-Fried secretly moved billions to speculate and finance his lavish lifestyle. He has repeatedly denied all fraud allegations and pleaded not guilty. However, he admitted mistakes in the company’s management. The process is scheduled to last six weeks. If convicted, Bankman-Fried could face up to 115 years in prison.