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Unchained

SBF Trial, Day 5: SBF's Defense Finally Found Its Legs, But Can It Counter Caroline Ellison?

Oct 11, 2023
Caroline Ellison, former CEO of Alameda Research, exposes SBF's role in alleged financial mismanagement at FTX. Her gripping testimony details how Alameda manipulated FTT's trading and her dire warnings about repayment capabilities. The courtroom drama intensifies as Gary Wang's cross-examination uncovers his loyal support for SBF. Ellison's accounts, including SBF's extreme views on risk, set the stage for a clash over the defense’s strategy and possible justifications for borrowing customer funds.
18:02

Podcast summary created with Snipd AI

Quick takeaways

  • The defense highlighted the importance of properly hedging to prevent greater financial losses.
  • Caroline Ellison revealed alleged financial mismanagement at Alameda Research, including undisclosed loans and misleading balance sheets.

Deep dives

Ellison testifies, blaming Bankman-Fried for Alameda's usage of FTX customer funds

Caroline Ellison, the former CEO of Alameda Research and ex-girlfriend of Sam Bankman-Fried (SBF), testified in the criminal trial. Ellison and Bankman-Fried seemed to blame each other for Alameda's usage of FTX customer funds to pay debts. Defense lawyer Mark Cohen questioned Gary Wong, co-founder of Alameda and FTX, about the difference between Alameda's total assets and its balance on FTX. Wong revealed that despite Alameda's negative balance on FTX, its net asset value (NAV) was positive, and some lenders were paid back.

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