FTX

Sam Banks In Trouble, The Truth Has Been Spoken

Sam Bankman-Fried, the creator of the cryptocurrency exchange FTX, allegedly "directed" his ex-girlfriend and subordinate to use customers' funds to pay back dangerous loans he had taken out.

In the trial of Mr. Bankman-Fried, who is charged with fraud and money laundering, Caroline Ellison gave a witness statement.

According to Ms. Ellison, her former supervisor employed a risky strategy that depended on FTX deposits for backing.

She claimed that the methods he set up allowed billions to be stolen from clients.

One of the largest marketplaces in the world where cryptocurrency investors could purchase and exchange digital currencies once existed as FTX. With more than $8bn (£6.51) allegedly missing, it declared bankruptcy in November.

According to the prosecution, Mr. Bankman-Fried's downfall followed the theft of billions of dollars in client monies, which he reportedly used to support his cryptocurrency trading company Alameda Research and purchase real estate.

Ms. Ellison, who took over as the leader of Alameda Research in 2021, is one of the case's primary players. She admitted to lying to investors and other crimes in December, telling the judge: "I knew that it was wrong."

Soon after 12:30 local time (16:30 GMT), she joined the witness stand and informed the court that Alameda had finally taken approximately $14 billion (£11.4 billion) from FTX clients and used it for investments and lender repayments.

She noted that Alameda was able to give the exchange some of that money back.

"He was the one who set up these systems that allowed Alameda to take the money and he was the one who directed us to take customer money to repay our loans," claimed Ms Ellison.

Ms. Ellison, who took over as the leader of Alameda Research in 2021, is one of the case's primary players. She admitted to lying to investors and other crimes in December, telling the judge: "I knew that it was wrong."

Soon after 12:30 local time (16:30 GMT), she joined the witness stand and informed the court that Alameda had finally taken approximately $14 billion (£11.4 billion) from FTX clients and used it for investments and lender repayments.

She noted that Alameda was able to give the exchange some of that money back.

"He was the one who set up these systems that allowed Alameda to take the money and he was the one who directed us to take customer money to repay our loans," claimed Ms Ellison.

Quote Of The Day,

"As the value goes up, heads start to swivel, and sceptics soften. Starting a new currency is easy. Anyone can do it. The trick is getting people to accept it because it is their use that gives the 'money' value." — Adam B. Levine