Caroline Ellison, the former girlfriend and business partner of ex-FTX CEO Sam "SBF" Bankman-Fried, testified on October 10 that Bankman-Fried aspired to become the President of the United States. Ellison revealed this during her testimony as a witness against Bankman-Fried in his ongoing criminal trial. Following the end of their personal relationship, the two continued working together in leadership roles at Alameda Research and FTX until November 2022.
Ellison acknowledged her involvement in fraud during her tenure at Alameda, alleging that she had "set up the system" that enabled hedge funds to siphon an estimated $14 billion from the exchange. This revelation was part of a plea agreement she reached with prosecutors. She disclosed that between 2020 and 2022, Alameda received between $10 and $20 billion in FTX user funds, which were partially utilized to repay loans, investments, and stablecoin exchanges. FTX did not disclose Alameda's credit line to investors or auditors.
Ellison also claimed that she wasn't genuinely qualified to serve as Alameda's CEO and said that her actions were often directed by SBF, who could terminate her employment. She portrayed Bankman-Fried as having a high tolerance for risk, suggesting he was willing to take extreme chances to achieve his goals. According to her testimony, in 2021, she had an annual salary of $200,000 and received a $20 million bonus.
In response, SBF's attorneys have not yet cross-examined Ellison. Their defense strategy appears to focus on shifting some of the blame for FTX's downfall away from SBF and onto Ellison, implying that she used the exchange's funds at her discretion. SBF has pleaded not guilty to all charges, and the trial is ongoing.
