Cross-examination by defense attorney Mark Cohen former Caroline Ellison, CEO of Alameda Research

after witness said Sam Bankman-Fried convinced her to mislead her social media Data and ordered repayment of the financed loans with stolen Client encryption.

Witness testimony on day six Weak months revealed leading To the collapse of FTX

that was marked by substandard corporate practices and buried secrets.

Bankman Fried didn’t just supervise the counterfeiting financial Records sent to lenders like Creating and hiding the hollow value of FTT, say Ellison, FTX and Alameda also Lend at least $5 billion to select employees for Speculative investments, political donations, and cryptocurrencies.news Reported coverage of the SBF trial.

Accounts of Alleged bribes paid to Chinese officials to unfreeze about $1 billion, possibly belonging to FTX clients, suggest abuses occurred. of Foreign Corrupt Practices Act (FCPA) allegations by employees including SBF himself and Alameda’s co-CEO at the time, Sam Trabucco.

US Foreign Corrupt Practices Act (FCPA) laws prohibit individuals and entities from carrying them out Illegal acts, including bribery, involving foreign officials.

according to Inner City Press, the bribes were given with the help of Constance Wang, David Ma, and another name mentioned only as “Handy.” Ma asked FTX and Alameda to transfer $100 million in Cryptocurrencies to wallets owned by Thai escorts according to reports.

She told Alameda employees that FTX borrowed customer money – Ellison

the seventh day of SBF fraud trial in The Manhattan federal court continued with Questioning of Ellison’s testimony by defense Attorney Mark Cohen. District Judge Louis A. Kaplan against Consider a $1 billion stake in Anthropic Artificial Intelligence Corporation during the hearing.

caroline ellison, former CEO of Alameda Research, a sister company to FTX, said it believes FTX is a… business And love SBF for And it wasn’t Solana best Ideas by a long shot.

Ellison also There were doubts about the investment in TerraUSD or UST, algorithm stablecoin Associated with TerraLuna, now Luna Classic. FTX and Alameda directly UST lost at least $100 million, according to every witness account, as UST’s collapse in mid-2022 reverberated across the cryptocurrency and Terra markets. creator He became Do Kwon international He escaped shortly after.

The witness said they assumed more of Duties at SBF Hedge Fund, which in Ha view It was somewhat organized as a file trading Inc., when Sam Trabuco, Alameda’s co-CEO, resigned in August 2022.

SBF suggested that Ben Xie become the replacement for Trabuco, but Caroline thinks so one The CEO was the better of the two, Ellison answered during questioning.

caroline, in Ha more Of three hours Under oath on October 11 indicated that the SBF had veto power on final decisionsalthough Trabuco and herself were often consulted regarding it trading.

Alameda and FTX CTO Gary Wang and former FTX lead Engineer Nishad Singh handled the programming and development.

Alameda risk administration left Much is to be desired by witness accounts though access To large properties. The company has been hacked at least once and the wallet keys were stored internally without a formal structure.

This certificate confirms the subject of former employee aditya Bharadwaj, who He said Alameda lost huge amounts of money due to “poor security practices.”

a company also He had a ‘semester bonus system”which was issued millions in The loans made to employees semi-annually were allegedly padded with FTX client cash And flexible loans from lenders.

Binance CEO Changpeng ‘CZ’ Zhao’s tweets likely fueled the issue firebut SBF’s cryptocurrency empire has been undone due to illegal borrowing of FTX clients fund money according to witness while responding to AUSA Danielle Sassoon redirect.

SBF said he probably would start a new The company and Ellison admitted wrongdoing to about 30 employees during an all-hands meeting after FTX’s collapse.

Yes. I said Sam, Gary, Nishad, and I decision To repay loans with The clients’ money was Sam’s.

caroline ellison, former CEO of Alameda Research

The founder of FTX traded Japanese bonds

the next Stele, Alameda software Engineer Christian Drape worked at a distance of 40 feet of SBF in 2022 from a $30 million New Albany condo. Darabi believed that everyone had informed Bankman-Fried and that SBF had done so total access.

Stunned employees read about the conversations of Binance acquisition on social media From FTX and Hong Kong to Alameda office He pressed Ellison for Updates on November 8 before calling a staff meeting.

Drape says He resigned 24 hours After all hands.

The Prince of BlockFi bears witness

The seventh witness in In the SBF trial, BlockFi CEO Zach Prince said his company began lending to Alameda and FTX in Early 2021. BlockFi called open term loans worth 650 million dollars in June 2022, and will eventually go bankrupt in the same month as FTX.

At 4:30 PM New York time, Judge Kaplan adjourned the hearing until October 13. made Mentionsed of two more Witnesses including one Law enforcement agent.