{"id":2062312,"date":"2023-10-10T16:34:02","date_gmt":"2023-10-10T20:34:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dem-megadonor-bankman-fried-directed-fraud-ex-girlfriend-tells-jury\/"},"modified":"2023-10-10T16:39:27","modified_gmt":"2023-10-10T20:39:27","slug":"dem-megadonor-bankman-fried-directed-fraud-ex-girlfriend-tells-jury","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dem-megadonor-bankman-fried-directed-fraud-ex-girlfriend-tells-jury\/","title":{"rendered":"Ex-Girlfriend Accuses Bankman-Fried of Directing Fraud in Court"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdem-megadonor-bankman-fried-directed-fraud-ex-girlfriend-tells-jury%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2062312&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Former \u200cCEO Testifies that Crypto Mogul Directed Fraudulent Activities<\/h2>\n<p>Caroline Ellison, the former <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/canadian-olympic-committee-warns-athletes-not-to-criticize-china\/\" title=\"Canadian Olympic Committee Warns Athletes Not to Criticize China\">chief executive officer<\/a> of Sam Bankman-Fried&#8217;s hedge fund, testified on Tuesday that the former\u2062 crypto mogul directed her and others to defraud customers of his \u2064FTX\u200b exchange \u200cby taking their \u200cmoney\u2062 without their knowledge.<\/p>\n<p>Ellison,\u2063 who said she\u2064 previously dated Bankman-Fried, depicted her former boss as an ambitious young man who had no qualms about sharing\u2063 misleading financial information with lenders and thought he could one \u200cday become U.S. president.<\/p>\n<p>Ellison said the hedge fund, Alameda Research, took about $10 billion in FTX customer funds to repay \u2064its\u200b debts and make investments. The\u2062 fund gained\u2063 the money through a $65 billion line of credit it had on the exchange, and from funds FTX customers deposited into\u200d an Alameda bank account when FTX lacked its own account.<\/p>\n<p><strong>&#8220;He was\u200b the one who set up these systems that allowed Alameda to take the money and he was the one who directed us to \u2064take customer money to repay our loans,&#8221;<\/strong> Ellison said.<\/p>\n<h3>Cooperating Witnesses and Allegations<\/h3>\n<p>The testimony by Ellison, 28, was keenly awaited. She is one \u200dof three ex-members of the 31-year-old former billionaire&#8217;s \u200dinner circle who have pleaded guilty to fraud charges and\u200d agreed \u200dto cooperate with the Manhattan U.S. Attorney&#8217;s office.<\/p>\n<p>Prosecutors say Bankman-Fried plundered billions in customer funds to prop up Alameda, buy\u200b real estate, and donate more than $100 million to U.S. political \u200dcampaigns before FTX declared bankruptcy in November 2022 following a collapse that <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sam-bankman-frieds-onetime-roommate-gary-wang-takes-stand-at-trial\/\" title=\"Gary Wang, former roommate of Sam Bankman-Fried, testifies at trial.\">shocked financial markets<\/a> and left his reputation in tatters.<\/p>\n<p>Bankman-Fried has pleaded\u200d not \u200cguilty to \u2064two counts \u2062of fraud and five counts of conspiracy, and \u200dhas argued that while he made\u2063 mistakes running FTX, \u200bhe never intended to steal funds.<\/p>\n<p>In his \u200bopening statement last week, defense lawyer Mark Cohen told jurors to\u2063 question\u2063 whether\u2062 cooperating witnesses like Ellison were putting a new, nefarious spin on \u200cold decisions by Bankman-Fried which they had\u200c originally agreed with.<\/p>\n<p>Gary\u200b Wang, FTX&#8217;s former technology chief, testified that Bankman-Fried falsely tweeted that FTX was\u200b &#8220;fine&#8221; in November as the exchange faced \u2062surging demand for withdrawals. A \u2062third cooperating witness, former FTX engineering chief Nishad Singh, is also expected to testify at the trial, which could last up to six weeks.<\/p>\n<h2>Presidential Ambitions and Political Donations<\/h2>\n<p>Ellison testified \u2063that she met Bankman-Fried while both were working at Jane Street, a Wall Street trading\u200b firm. Bankman-Fried\u200b left in 2017 to\u200b found \u2064Alameda, and Ellison followed when \u200bhe offered her a job as a trader.<\/p>\n<p>&#8220;He was very ambitious,&#8221; Ellison told the court.<\/p>\n<p>She said Bankman-Fried \u2062viewed \u2063political donations as a relatively inexpensive\u2062 way to amass power, and even believed there was\u2063 a 5 percent chance he could become president \u2064himself.<\/p>\n<p>&#8220;He said he thought\u2064 it was very effective that you could get \u200dvery high returns in terms of influence by spending relatively small amounts of money,&#8221; she said, adding that he had \u200ddonated $10 million to President Joe Biden&#8217;s campaign.<\/p>\n<p>Cohen in his opening statement sought to pin some of\u200d the blame for the collapse of\u2063 FTX and\u2064 Alameda onto Ellison, saying Bankman-Fried had told her to hedge Alameda&#8217;s bets but that she\u200b did not.<\/p>\n<p>In testimony that \u2064could undermine that argument, Ellison said \u2063she \u2064always consulted Bankman-Fried on\u200b big decisions and always deferred to \u2064him.<\/p>\n<p>&#8220;He was the person\u200d I \u2062officially reported to, he owns the company, and he was the one who set my compensation and had the ability to fire me if he wanted,&#8221; she said.<\/p>\n<p>While Bankman-Fried \u2062has written blog \u200dposts and\u2062 granted interviews to\u200c reporters since his December 2022 arrest, Ellison has maintained a \u2063low profile since \u2063she pleaded guilty\u200b that same month.<\/p>\n<p>In July, the <em>New York Times<\/em> published a story\u200c citing Ellison&#8217;s private writings from before \u2062FTX&#8217;s collapse in\u200d which she described feeling overwhelmed at work and\u200b hurt by \u2063a breakup with Bankman-Fried. After defense lawyers acknowledged that Bankman-Fried had shared\u200c the writings with\u200d a \u2062Times reporter, U.S. District Judge\u2063 Lewis Kaplan revoked his $250 million bail and \u200dsent him\u200b to jail for probable witness-tampering.<\/p>\n<p>(Reporting by Luc Cohen and Jody Godoy in\u2064 New York; \u2062editing \u200cby Noeleen Walder, Nick Zieminski, \u200band \u200bMatthew \u200dLewis)<\/p>\n<p> <\/p>\n<h2> How did \u200cAlameda Research allegedly use \u2064FTX customer funds and \u200cwhat role did Bankman-Fried play\u2063 in this<\/h2>\n<p><span>  Nkman-Fried in\u200d 2017\u2062 when he was starting out in the \u2062crypto industry. She described him as a driven and charismatic individual\u200c who had grand\u200c ambitions. Ellison\u2062 revealed that Bankman-Fried\u200c had expressed his desire to become the President\u2062 of the United \u200dStates one day.<\/p>\n<p>In her testimony, Ellison portrayed Bankman-Fried \u200cas \u200csomeone who \u200dwas willing to do \u2064whatever it took \u2063to achieve his goals, even if it meant deceiving others. She alleged \u2064that he instructed her and others \u2064to mislead lenders by \u200bproviding them with <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senator-demands-answers-on-whether-bidens-announcement-of-3-billion-green-energy-grants-misled-investors\/\" title=\"Senator Demands Answers on Whether Biden's Announcement of  Billion Green Energy Grants Misled Investors\">false financial information<\/a>. This was \u200bdone to\u200b secure loans and credit lines \u200bfor Alameda Research, the hedge fund\u2064 associated with FTX.<\/p>\n<p>According to Ellison, \u2062Alameda\u2064 Research used approximately $10 billion of FTX customer funds to repay its own debts and make investments. The funds were obtained through a line of credit on the exchange and\u2063 from deposits made by\u2063 FTX \u2064customers into an Alameda bank account. Ellison claimed that \u200cit was Bankman-Fried who set up the systems that allowed Alameda to access \u2063and use \u2062customer \u2062funds.<\/p>\n<p>These\u2063 allegations have serious implications for\u2064 Bankman-Fried, who is\u200b currently facing charges of fraud and conspiracy.\u200b Prosecutors argue that he used customer funds to prop up his own ventures, including buying real \u2062estate and making substantial \u2063political donations. \u2062The collapse of FTX and the subsequent bankruptcy in 2022 sent shockwaves through the financial markets, tarnishing Bankman-Fried&#8217;s\u200d reputation.<\/p>\n<p>Bankman-Fried, however, maintains his innocence. \u200cHis defense lawyer argued that while mistakes were made in running FTX, Bankman-Fried never intended to\u200b steal \u2062funds. \u200cThe defense also questioned the credibility of cooperating witnesses like Ellison, suggesting that \u2062they may be distorting the truth to improve their own situations.<\/p>\n<p>The trial\u2063 is expected to last up to six weeks, with additional testimony from other former members of Bankman-Fried&#8217;s inner circle. Gary Wang, FTX&#8217;s former \u2062technology chief, testified that Bankman-Fried falsely reassured the public about FTX&#8217;s stability despite facing growing\u200c pressure\u2062 for withdrawals. Another witness, Nishad Singh, the former FTX \u2064engineering chief, is also expected to provide testimony.<\/p>\n<p>The outcome of this trial will have significant implications\u2062 for the\u200d crypto industry. It\u200b highlights the importance of accountability\u2063 and transparency \u2063in the sector, as \u2063well \u200bas the potential risks \u200dassociated with entrusting large sums of\u200c money to cryptocurrency exchanges. It serves as\u2063 a\u200b reminder that investors and customers must exercise caution and conduct\u2063 thorough due\u2063 diligence when engaging with such platforms.<\/p>\n<p>The allegations against Bankman-Fried also raise questions about \u2063the relationship between \u2064cryptocurrency and politics. His substantial political donations, which surpassed $100 million, underscore the need for scrutiny\u200d and\u200c regulation in this intersection. As the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sam-bankman-fried-reportedly-paid-tom-brady-55-million-for-ftx-advertising\/\" title=\"Sam Bankman-Fried allegedly spent  million on FTX ads featuring Tom Brady.\">crypto industry continues<\/a>\u200c to \u2064evolve and expand its influence, it is imperative to ensure that it operates within the boundaries of\u200d legality and ethical standards.<\/p>\n<p>Overall, the testimony\u2064 of Caroline Ellison sheds light on the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dem-megadonor-bankman-fried-directed-fraud-ex-girlfriend-tells-jury\/\" title=\"Ex-Girlfriend Accuses Bankman-Fried of Directing Fraud in Court\">alleged fraudulent activities conducted<\/a>\u2064 by former crypto mogul Sam Bankman-Fried. It provides valuable insight\u2063 into the inner workings\u200d of FTX \u200dand highlights the potential risks associated \u200cwith the cryptocurrency\u2064 industry. The \u2064outcome of \u200bthis trial will undoubtedly have wide-ranging implications for the future of the sector and its relationship with politics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Caroline Ellison, ex-CEO of Sam Bankman-Fried&#8217;s hedge fund, testified that the crypto mogul instructed her and colleagues to deceive FTX exchange customers, secretly taking their funds. Ellison, who had a romantic relationship with Bankman-Fried, portrayed him as an ambitious youth.<\/p>\n","protected":false},"author":66,"featured_media":2062313,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[544],"tags":[],"class_list":["post-2062312","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-free-beacon"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2062312","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2062312"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2062312\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2062313"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2062312"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2062312"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2062312"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}