Bankman-Fried’s Girlfriend Reveals Misuse of Funds in FTX Trial

Bankman-Fried’s girlfriend and former CEO of Alameda Corporation took Platform on the second week of The trial that revealed that SBF used clients’ money for Political pressure.

The second week of The trial of FTX founder Sam Bankman Fried has begun off At 10 a.m. New York time today, as the defendant’s ex-girlfriend W former Alameda CEO, Caroline Ellison, took Platform. The testimony revealed the details of how SBF used FTX client funds, including for political lobbying for Both Democrats and Republicans.

Careful Interrogation of Gary Wang, CTO and Co-Founder of FTX

Gary Wang has been questioned before prosecutors on On Thursday and Friday, the defendant’s lawyers, Christian Everdale and Mark Cohen, questioned the witness today.

• Wang only learned that Alameda was borrowing “unlimited” money from FTX when SBF asked him to calculate the interest charges.
• Wang received a $200 million loan from FTX. I used $200,000 for buy a house. Another $35 million from defense, Everdell said for a house in Saint Kitts.
• When Alameda pulled funds from FTX, it was not reflected on Cash balance on the stock exchange.
• Wang emphasized that FTX has a liquidity engine to prevent redemptions.
• SBF was angry with Ellison about fact Alameda did not hedge its positions according to his advice.
• On November 6, 2022, FTX saw nearly $100 million withdrawn by clients per hour.

Certificate of Caroline Ellison, Former CEO of Alameda Research

Caroline Ellison met Sam Bankman Fried on Jane Street, one of New York’s iconic restaurants trading firm. After that, the two dated for A few years, and SBF made Her co-CEO of Alameda Research. Bankman Fried first Alameda research began and then on- Ellison assumed the position of CEO.

• To beginCaroline Ellison admitted to fraud with SBF.
• According to Ellison, SBF asked her to take several billion worth of Client funds from FTX as loans for Alameda and invest it in Other projects. a lot of Those investments are made later failed.
• Alameda took $14 billion of FTX clients’ money to repay its loans.
• Ellison didn’t do that know That Alameda was puzzled before joining. She didn’t find out until later joiningand SBF joint plans To cover these losses. these plans Take included money From third parties, especially FTX.
• SBF told Ellison that wanted To become president of United State.

• In 2020 and 2022, Alameda received between $10 billion and $20 billion in direct deposits from FTX.
• Alameda used $2 billion to repay loans, make investments, and transfer capital to USDC.
• in realityAlameda just needs a line of credit worth $100-200 million from FTX, but it appears the credit was “unlimited”.
• Ellison didn’t know if Alameda had to redo it or not money.
• Alameda has a lot of Solana, Ellison referred to Solana as part of “Sam’s coins.”
• SBF gave $10 billion to the Biden administration.
• Rayan Salama, CEO of FTX Digital Markets (a subsidiary of FTX), took A $35 million loan from the stock market, which he used to make contributions to Republicans.
• SBF wanted to buy back Binance’s FTX shares in 2021, raising concerns that its CEO, Changpeng Zhao, will do so cause problem if it is found out About Alameda Franchises.
• in one Point, Alameda owes $9 billion in Loans to lenders like Genesis, $7 billion in available FTX client money, $3 billion to FTX.
• Ellison admitted to sending “adjusted” balance sheets to FTX, which made Alameda appear less risky than it was.
• FTX withdrawals have been halted due to Alameda’s withdrawal out $10-14 billion to pay back Lenders like Genesis and Voyager (who We are also Bankrupt now).