Unchained
SBF Trial, Day 6: Caroline Ellison Recalls 'The Worst Week of My Life
Oct 12, 2023
Caroline Ellison’s heart-wrenching testimony unveils the chaos behind Alameda and FTX. She shares shocking tales, like alleged bribery attempts and dubious account setups. The financial fallout following the crypto crash led to desperate measures, with SBF reportedly at the helm. Ellison also exposes the manipulation of balance sheets and the misuse of customer funds. The secretive culture of the company, marked by disappearing messages for sensitive matters, reveals the turmoil brewing behind the scenes as everything began to unravel.
25:08
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Quick takeaways
- Alameda resorted to desperate measures, including bribing officials and creating fake accounts, to navigate the financial crisis caused by illiquid investments during the crypto market crash.
- Ellison's testimony exposed extensive manipulation of Alameda's balance sheet, concealing debt to FTX customers and raising ethical concerns about dishonesty within the organization.
Deep dives
Key Point 1: Illiquid investments and desperate measures
Caroline Ellison's testimony in the trial against Sam Binghaman Freed revealed that as the crypto markets crashed in 2022, Binghaman Freed continued to make illiquid investments, leading to a financial crisis for Alameda. To navigate the worsening situation, Ellison testified that Binghaman Freed, along with their alleged co-conspirators, resorted to desperate measures directed by SPF. These measures included references to bribing Chinese government officials, creating accounts using IDs of Thai prostitutes, and attempting to raise money by selling FTX shares to a Saudi prince.
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