2023-10-10 19:16:17
Published10. October 2023, 9:16 p.m
USA: He faces more than 100 years in prison – his ex-girlfriend is a key witness
Sam Bankman-Fried faces more than 100 years in prison if convicted. His ex-girlfriend, of all people, is a key witness in the ongoing trial.
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Former CEO of crypto hedge fund Alameda Research, Caroline Ellison, points at Sam Bankman-Fried during the fraud trial over FTX’s collapse.
REUTERS
The entrepreneur, who was once celebrated as a crypto prodigy, “built the system” through which customer money from FTX flowed into his crypto investment fund Alameda Research.
REUTERS
Bankman-Fried has to stand trial for fraud. His ex-girlfriend Ellison pleaded guilty to two counts of fraud during the investigation and is cooperating with prosecutors.
IMAGO/ZUMA Wire
That’s what it’s regarding
Sam Bankman-Fried is charged with fraud.
His ex-girlfriend Caroline Ellison is a key witness.
It puts a heavy burden on the former crypto prodigy.
The ex-girlfriend and former business partner of crypto entrepreneur Sam Bankman-Fried, who was accused of fraud, has heavily incriminated the 31-year-old in court. Caroline Ellison said in a federal court in New York on Tuesday that she and Bankman-Fried had embezzled “around $14 billion” (around 12.6 billion Swiss francs) from customers of the cryptocurrency platform FTX. At the time, Bankman-Fried instructed them to “commit these crimes.”
The entrepreneur, who was once celebrated as a crypto prodigy, “set up the system” through which customer money from FTX flowed into his crypto investment fund Alameda Research, said the former head of Alameda and current key witness for the prosecution. The money was used “for investments and to repay debts”.
Business construct collapsed
The world’s second-largest crypto exchange at the time, FTX, went bankrupt last November, triggering an earthquake in the crypto world. Bankman-Fried – nicknamed “SBF” – had previously embodied the rise of cryptocurrencies into a supposedly serious investment like no other.
However, the business structure collapsed when it became known that FTX was partly using customer funds to support the crypto investment fund Alameda Research, also founded by Bankman-Fried, which sometimes made highly risky investments. Investors withdrew their funds in panic, leading to FTX’s bankruptcy. In the end, around $8.7 billion was missing.
Bankman-Fried was later arrested in the Bahamas and extradited to the United States. He has to stand trial for fraud. His ex-girlfriend Ellison pleaded guilty to two counts of fraud during the investigation and is cooperating with prosecutors. Bankman-Fried faces more than 100 years in prison if convicted.
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(AFP/job)
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