SBF Trial: What to Expect From Caroline Ellison’s Testimony this Week

Caroline Ellison, ex-girlfriend and business associate of Sam Bankman-Fried (SBF), who is also the key witness in his fraud trial, is set to take the witness stand this week.

Ellison’s Testimony to Share More Details

Ellison’s court appearance is happening as soon as Tuesday and her testimony is seen as pivotal in SBF’s case. It is expected that her testimony will expose the inner workings of the defunct crypto exchange FTX and its sister trading firm Alameda Research. 

Before the collapse of FTX and its subsidiaries, Ellison was the Chief Executive Officer (CEO) of Alameda Research. She was one of the few people who were privy to work closely with Bankman-Fried and therefore, had insights into his inner activities. Prosecutors strongly believe that all members of this “inner caucus” are aware of the truth behind the alleged fraud conducted by the embattled former CEO of the exchange.

The 31-year-old entrepreneur was indicted in November 2022 for the role he played in the collapse of FTX. According to prosecutors, Bankman-Fried had long planned the fraud and had been using customers’ assets to fund his lavish lifestyle, buying real estate and several speculative investments. 

As expected in any high-profile legal case of this nature, SBF claimed that he is not guilty of any of the charges levied against him.

Ellison and Gary Wang Pleads Guilty

When approached with charges about SBF’s siphoning of billions of dollars in FTX customer funds to the sister trading firm and the part she played in it, Ellison pled guilty and also agreed to work with prosecutors to get to the root of FTX’s implosion. 

Gary Wang, another FTX executive, also pleaded guilty to the charges levied against him.

Wang is one of the executives from FTX that has testified about the illicit activities of the exchange. With Ellison taking the witness stand, she is likely to mention a meeting that was held with Alameda employees in 2022. 

In this meeting, Ellison admitted that Alameda Research redirected FTX customers’ deposits to repay loans. Moreso, she established the fact that Bankman-Fried was aware of and authorized the transaction. 

The intricate and sour relationship between SBF and Ellison has pushed him to share her personal document to The New York Times, an offense that the DOJ claims is witness tampering and has catalyzed his incarceration in jail throughout this trial.