Caroline Ellison Takes the Stand: the Sam Bankman-Fried Trial Week 2 (Feat. Nikhilesh De)
Oct 17, 2023
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Nikhilesh De of CoinDesk joins the podcast to discuss the ongoing trial of Sam Bankman-Fried. The interesting topics covered include the testimony of witnesses Gary Wang and Carolyn Ellison. They explore the implications of lying in the trial, Carolyn's testimony and her portrayal of her relationship with Bankman-Fried, Ellison's testimony about alleged Chinese government bribery, a funds freezing scheme, wire fraud rumors, and the judge's frustration during the trial. The podcast also analyzes the trial proceedings and defense strategy.
Gary Wong testified about accessing funds and trading ahead on FTX platform, revealing potential market manipulation.
Caroline Ellison highlighted her coerced involvement in illicit activities instructed by Sam Bankman-Fried, including bribery and hiding liabilities.
Deep dives
Gary Wong's cross-examination
Gary Wong, a former FTX insider, answered prosecution questions about accessing funds from FTX customers, placing trades ahead of others on the platform. Defense cross-examination focused on details of his testimony and cooperation agreement with prosecutors.
Cooperation agreements and potential sentences
Gary Wong, Nishad Sayani, and Carolyn Ellison pleaded guilty to charges and agreed to testify in exchange for leniency from the judge. The DOJ will outline their crimes and testimony, but the judge will have the final discretion regarding their sentences, which may or may not include prison time.
Carolyn Ellison's testimony
Carolyn Ellison, former co-CEO of Alameda Research, described her involvement in various activities instructed by Sam Bankman-Fried. She emphasized her submission to his manipulation and abusive relationship. She also revealed details about attempts to hide balance sheet liabilities and engage in illicit behavior like bribing government officials.
Defense strategy and challenges
The defense team faced scrutiny for repetitive and less insightful cross-examinations. They have yet to present a compelling narrative that counters the prosecution's case. Observers speculate about the defense's strategy and question its effectiveness so far. The trial is expected to continue with more witnesses, including Nishad Sayani.
Bennett and Cas are joined by Nikhilesh De of CoinDesk to discuss the ongoing trial of Sam Bankman-Fried, and specifically the testimony of Gary Wang and Caroline Ellison.