The Breakdown
The Most Shocking Details of Caroline Ellison's Damning SBF Testimony
Oct 14, 2023
Caroline Ellison, prosecutions star witness in the case against Sam Bankman-Fried, reveals shocking details including massive bribes to Chinese officials, use of signal and self-deleting message apps, a bribery plan involving Thai prostitutes, and $100 million spent on bribes.
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Quick takeaways
- Caroline Ellison's testimony revealed Alameda Research's financial troubles and Sam Bankman-Fried's involvement in repaying loans with customer funds.
- Caroline disclosed the use of creative balance sheet accounting and Alameda's involvement in bribery, providing motives for Sam's actions in the trial.
Deep dives
Testimony Highlights Caroline's Role in Alameda and Financial Troubles
Caroline Ellison's testimony in the SPF trial revealed her significant involvement in Alameda Research and the financial troubles the company faced. She admitted that Alameda had lost a substantial amount of money in the cryptocurrency market downturn and didn't have enough liquid assets to repay billions of dollars in loans. Sam, the CEO of FTX, directed the repayment of these loans using Alameda's line of credit, which Caroline stated would be sourced from customer funds. She mentioned her constant state of stress and dread, fearing customer withdrawals and the potential harm to those affected. The prosecution's questioning focused on revealing the case against Sam and the actions taken by Alameda to manage their financial situation.
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