For a comprehensive list of all the revelations and accusations to emerge from Ellison’s October 10 testimony, click here.

On October 10th 2023, Caroline Ellison, the former-CEO of the SBF-founded trading firm, Alameda, was brought in to testify as a witness, as part of the ongoing trial for FTX-founder, Sam Bankman-Fried. Ellison’s testimony is so far the longest of any witness brought into the case, and what she said has both lent further clarity to the FTX saga, as well as sparking controversy in the industry…

Who is Caroline Ellison?

Ellison, born 1994, was educated at the prestigious Stanford University. From there, she joined the elite quantitative trading firm, Jane Street, and it was here that she first met Sam Bankman-Fried. 

After Bankman-Fried left Jane Street to found Alameda, Ellison and Bankman-Fried’s stories became altogether more intertwined…

Ellison and SBF’s Love Affair: Secrets and Neglect

According to @InnerCityPress’ comprehensive coverage of Ellison’s statements, Ellison and Bankman-Fried started sleeping together in the Summer of 2020, only to eventually break up.

When questioned as to why Bankman-Fried and Ellison terminated their relationship, Ellison’s primary reasoning was that the FTX founder was not spending sufficient time with her. In addition, Bankman-Fried explained to Ellison that she was only permitted to disclose the fact that they were living together, but “no more”.

Ellison and Bankman-Fried’s relationship was secret “At first. Then he told me I could say we were living together, but no more” - Ellison’s statements as reported by Inner City Press.

Just Following Orders…

Perhaps the biggest takeaway from Ellison’s testimony is her apparent narrative that it was Bankman-Fried that made Ellison commit crimes such as fraud, among many others.

“He directed me to commit these crimes” said Ellison.

Ellison’s comments appear to follow a wider story that, despite multiple individuals’ involvement in the now-exposed FTX saga, it was Bankman-Fried at the top of the hierarchy, instructing his underlings to carry out nefarious activities. 

Bankman-Fried’s Presidential Ambitions

One further revelation from Ellison’s testimony ran that Bankman-Fried ambitions far transcended the cryptocurrency industry. Ellison claims that Bankman-Fried had explained to Ellison “That he would be President… Of The United States”. 

Naturally, the unveiling of Bankman-Fried’s arrogance has been met with anger and humor in the cryptocurrency space…

Alameda’s Relationship with FTX

Both founded by Bankman-Fried, the overlap between Alameda and FTX was far from small.

Ellison’s testimony began by explaining that “Alameda took several billions of dollars from FTX customers and used it for investments”. In addition, Ellison disclosed that some “$10 billion. Ultimately around $14 billion” had been taken from FTX, by Alameda, in order to repay its colossal loan values. 

As clarified by Ellison, this was the reason that FTX had insufficient funds for its customers in November 2022.

In addition, Ellison claimed that some $10-20 billion had been deposited to Alameda from FTX, with Alameda receiving funds in 2020 and into 2022. Alameda then used the funds to “repay loans, investments, and stablecoin conversions like USDC”.

Political Contributions: $10 Million to President Biden

Ellison’s testimony also saw discussion of loans and political donations.

While one loan for $3.5 million was taken from FTX in Ellison’s name, allegedly for a gambling company, a further $35 million loan was given to the now-disgraced Ryan Salame.

Salame’s loan was reportedly used for “contributions to Republicans”, while Bankman-Fried also gave a further $10 million to President Biden, as he “thought it bought him access”.

Alameda’s Credit Line with FTX

Ellison further clarified details around a credit line that Alameda had established with FTX. The existence of which allowed Alameda to “withdraw coins even if we didn’t have them”. Ellison was not aware of the size of the credit line.

Ellison’s $20 Million Bonus

Amongst other revelations came clarity around Ellison’s financial compensation whilst working with Bankman-Fried and Alameda.

According to her own testimony, Ellison was pocketing $200,000 per year in base salary. However, this pales in comparison to the $20 million bonus she received in 2021.

According to Inner City Press’ account, Ellison used $10 million to make an investment in a startup, and also made a $100,000 loan to her parents. Ellison also placed a further $2 million with her own “donor-advised fund”.

The Trial Continues…

The above is just a small handful of the revelations and accusations that emerged from the questioning of Caroline Ellison. Readers can see a full comprehensive breakdown of Ellison’s statements by clicking here. 

As the SBF trial continues, it promises to be the most significant legal case in the cryptocurrency industry so far, with yet more shocking details yet to be revealed. Readers can get up to date on the first days of the trial in this recent article by BSC News.