Update on FTX Lawsuit: Testimonies Implicate Bankman-Fried

The ongoing trial concerning the downfall of FTX, a once-prominent cryptocurrency trading platform, has been putting Sam Bankman-Fried, its former head, under intense scrutiny. The court has been listening keenly to statements from key figures like Caroline Ellison, previously at the helm of Alameda Research, and FTX’s co-creator, Gary Wang.

Given her significant role in the alleged malpractices and her personal relationship with Bankman-Fried, Ellison’s testimony is vital. Reports from the courtroom dated October 10 suggest she made some impactful remarks during her first day of testimony.

Bankman-Fried’s Alleged Dominance

Ellison candidly stated that she was directly instructed by Bankman-Fried to engage in illicit activities, highlighting the seven felony counts she admitted to last December. She emphasized Bankman-Fried’s predominant influence in FTX’s operations.

She went on to detail how Bankman-Fried had full knowledge that Alameda was using FTX client funds, which amounted to “ultimately around $14 billion.” The funds were used until they were depleted in November 2022, forcing the firm to settle its debts to creditors. Ellison elaborated, “Alameda took several billions of dollars from FTX customers and used it for investments. (…) He set up the systems and told us to take the money. (…) I sent balance sheets that made Alameda look less risky than it was.”

Bankman-Fried’s Grand Visions

Further, Ellison shed light on Bankman-Fried’s aspirations, hinting at his ambition to potentially occupy the Oval Office. It’s worth noting that there are allegations against the former FTX CEO of misusing customer funds to contribute to political campaigns across the US political divide.

Prior to Ellison’s revelations, the court had listened to Wang’s cross-examination. He had commenced his testimony on October 5, where he confessed to collaborating in criminal activities alongside Bankman-Fried, Ellison, and ex-engineering lead Nishad Singh. Wang had also confessed his guilt earlier.

In financial news, the FTX token (FTT) was valued at $1.025 as of the last update, marking a 3.98% drop on the day. Over the past week, it decreased by 14.83% and has seen a slight decline of 0.75% over the past month, based on data from October 11.