SBF Trial: Caroline Ellison Reveals Shocking Details
Sam Bankman-Fried's ex-girlfriend testifies against him in court, revealing details of their relationship and a billion-dollar crypto conspiracy.
In the world of catty drama, we can't help but be captivated. It may not be the most intellectually stimulating content, but it's hard to look away. Yesterday, Caroline Ellison, the ex-girlfriend of crypto mogul-turned-crypto villain Sam Bankman-Fried, took the stand to testify against him, revealing tantalizing details about their relationship and a billion-dollar crypto conspiracy.
Ellison's journey with SBF began on a picturesque autumn day in September 2016. As an intern at the Jane Street proprietary trading firm, she found herself under SBF's watchful eye. He offered her mentorship, friendship, and eventually, the top position at his hedge fund, which would change her life forever.
Unable to resist SBF's charm, Ellison entered into an intimate relationship with him in 2019. "We started sleeping together on and off," she revealed in court. Their dating officially began a year later, and Ellison eventually became the CEO of Alameda Research.
However, despite their romantic connection, SBF refused to offer Ellison equity in the hedge fund. Initially receptive, he later claimed it was too complicated. "The whole time we were dating, he was my boss at work," Ellison added.
Their relationship had its ups and downs, but it ultimately came to an end in the spring of 2022. Throughout their time together, Ellison discovered more about SBF's ambitious nature and his aspiration to become the President of the United States. "He said there was a 5% chance he might be president someday," she recalled.
Although SBF would have to wait four more years to legally run for president, he believed his political donations could expedite his journey. Ellison revealed that he considered political investments to be highly effective, resulting in significant returns for relatively small amounts of money. He even believed his donations helped contribute to Joe Biden's successful 2020 campaign.
Exes have a unique power and motivation to use their knowledge against you, as SBF is now learning the hard way. Ellison, facing potential imprisonment for her involvement in the FTX fallout, pleaded guilty to seven charges, including fraud, in December 2022.
In an attempt to clear her name, Ellison has turned on her ex-boyfriend. During her testimony, she claimed that she was under SBF's control and that he orchestrated the crimes related to the collapse of FTX. She repeatedly emphasized that SBF was the one calling the shots, referring to FTT as "Sam's coins."
When asked to identify SBF in the courtroom, Ellison took her time, eventually pointing him out and stating that he was "over there wearing a suit."
Regardless of the state of their relationship, the handling of customer funds by both parties is undeniably egregious. Ellison admitted in court that Alameda took several billion dollars of FTX customer money for investments and to cover loans. She placed the blame squarely on SBF, claiming that he created systems to steal the money and allowed Alameda to accumulate a negative position of $2.7 billion in 2021, as well as a $65 billion line of credit.
Ellison asserted that she had concerns about Alameda's financial situation from the beginning. However, she did not address why she failed to take action at the time. Perhaps she was blinded by love. "Shortly after I started, I learned the company was in worse shape than I realized," she admitted, revealing that the hedge fund had initially relied on loans from acquaintances.
According to Ellison, SBF used customer funds to buy back FTX shares from Binance in 2021. He claimed it was crucial to prevent Binance from interfering with FTX. Despite her warnings that Alameda didn't have the money, SBF took $1 billion of FTX customer funds to complete the buyout.
As customers started withdrawing their funds and FTX faced financial difficulties, Ellison recounted, "Pretty soon [the exchange] started running out of money."
Dealing with an ex is never pleasant, especially when billions of dollars and potential lengthy prison sentences are involved. However, we can't help but eagerly await the next chapter of this captivating saga.