In a gripping courtroom drama, Caroline Ellison, the former head of Alameda Research and Sam Bankman-Fried’s ex-girlfriend, has made some startling revelations that are causing quite a stir in the cryptocurrency world. Her recent testimony has ignited allegations of a scheme to influence Bitcoin prices by selling BTC once it crosses the $20,000 threshold.
To back up her claims, she presented a message that simply read, “Keep selling BTC if it’s over $20K,” hinting at a deliberate effort to keep Bitcoin’s value from rising too high.
Ellison’s testimony didn’t stop there; it also unveiled some other worrisome activities happening within FTX. She disclosed that under the direction of Sam Bankman-Fried, Alameda Research had borrowed a staggering $13 billion from FTX customers by September 2022. This raised serious questions about what this massive sum was used for and whether there were any conflicts of interest involved.
The Genesis Loan Controversy
Ellison’s testimony also brought to light discussions involving Genesis, a retail lending platform. According to her, Genesis was on the verge of financial collapse and had requested a substantial $500 million from FTX. Ellison claimed that Bankman-Fried instructed her to transfer the funds to Genesis, despite her doubts about the transaction’s legitimacy.
These revelations have cast a shadow over Sam Bankman-Fried’s reputation and raised concerns about FTX’s integrity.
As the trial unfolds, the defense’s strategy becomes increasingly apparent. Earlier on, Judge Kaplan rejected a request from Sam Bankman-Fried’s legal team to present evidence regarding the role of lawyers in arranging loans provided by Alameda Research. This request was aimed at challenging the testimony of Gary Wang, the former Chief Technology Officer of FTX.
The defense’s actions are in response to their request to cross-examine Caroline Ellison, who suggested that Bankman-Fried had advised her to activate auto-deletion features on certain messaging accounts. By exploring the involvement of legal teams at Alameda or FTX, the defense hopes to demonstrate that there was no wrongdoing, despite the grave accusations.
As the trial continues, the legal community and cryptocurrency enthusiasts will closely monitor this case’s developments.
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