My1sttoday Business — Allegations of Bitcoin Price Suppression to $20k by Caroline Ellison and Sam Bankman-Fried.
In the ongoing criminal fraud trial involving FTX and its founder, Sam Bankman-Fried (SBF), explosive testimony emerged from Caroline Ellison, the former CEO of Alameda Research and an ex-girlfriend of SBF. Ellison alleged that SBF had conspired to manipulate the price of Bitcoin, deliberately keeping it below the $20,000 mark.
During her appearance in court, Ellison claimed that SBF had given direct orders to Alameda Research to sell Bitcoin acquired from FTX customer funds with the intention of stabilizing prices.
She also confessed to improperly utilizing customer deposits from FTX to cover Alameda’s debts, amounting to approximately $10 billion, at SBF’s request. When customers attempted to withdraw their funds in November 2022, neither FTX nor Alameda had sufficient reserves, leading to FTX’s collapse.
Ellison went on to reveal that SBF had instructed Alameda to engage in aggressive trading of the native FTX token, FTT, in a bid to defend its price peg during market downturns. Her testimony directly implicates SBF in the improper use of client funds and manipulation of markets. Ellison asserted that she had engaged in unlawful activities at the behest of the founder by misleading lenders.
These revelations shed light on the intricate interplay between Alameda and FTX’s operations, as well as their risky business practices. It’s worth noting that Ellison’s role as a key witness marks a significant twist in the case, given her previous close association with SBF as a partner and CEO.
Her statements have posed a substantial challenge to his defense. SBF could potentially face a lengthy prison sentence of up to 115 years if found guilty of all charges.