Caroline Ellison, a former tech executive who worked for Sam Bankman-Fried’s hedge fund, testified in court that he directed her to commit crimes before his cryptocurrency empire collapsed. Ellison admitted to committing fraud, conspiracy to commit fraud, and money laundering with Bankman-Fried and others. She described Bankman-Fried as ambitious and revealed that he believed there was a 5% chance of him becoming the President of the United States someday. Bankman-Fried, who is currently facing charges, watched Ellison’s testimony from the courtroom.
According to Ellison, Bankman-Fried was the driving force behind major financial moves in his companies, to the extent that bitcoins he created were sometimes referred to as “Sam’s coins.” She explained that he envisioned himself leading large companies and using his wealth to influence politics, including making political donations to Republican candidates and President Joe Biden. Ellison’s testimony is part of a cooperation deal that may result in leniency at her sentencing and could also be influential in determining Bankman-Fried’s fate.
Ellison and Bankman-Fried had a complicated romantic relationship, which began while she was working for his company. She testified that they initially kept their relationship a secret and later became involved romantically. Eventually, Bankman-Fried made Ellison the chief executive of Alameda Research, paying her a salary of $200,000 and giving her a $20 million bonus in 2021. Ellison also stated that Bankman-Fried instructed her to withdraw funds from FTX accounts to repay loans and that Alameda eventually withdrew up to $14 billion from FTX.
In summary, Caroline Ellison testified that Sam Bankman-Fried directed her to commit crimes before his cryptocurrency businesses collapsed. She described him as ambitious and revealed his belief that there was a 5% chance he could become President of the United States. Ellison also shared details about their romantic relationship and Bankman-Fried’s involvement in financial moves and political donations. Her testimony is part of a cooperation deal and may have significant implications for Bankman-Fried’s trial.
