The Caroline Ellison's Confessions in the Case Against SBF That Were Most Outrageous.

The Caroline Ellison's Confessions in the Case Against SBF That Were Most Outrageous.

The prosecution of FTX and its former executives is quickly turning into a complete farce.

Alameda's funds were allegedly manipulated in the SBF Trial, resulting in $10 billion in unpaid loans.

A scheme involving frozen Chinese government funds includes the use of crypto addresses, bribery, and negotiation.

By outlining attempts to use the funds of the Saudi Crown Prince, worries about FTX's reputation, manipulated balance sheets, and other issues, Ellison raises regulatory and investor confidence concerns.

The SBF Trial has only gotten crazier this week as numerous unanticipated items have been placed on the Jury's desk, including bribes from the Chinese government, luring the Saudi Crown Prince to invest in Alameda, Thai prostitutes and orgies, a scheme to suppress the price of BTC, and much more.

To unpack that will take more than a few days. We have compiled the most recent and important developments and updates so you can stay up to date with everything. We'll start off by introducing Caroline Ellison, SBF's former girlfriend. She gave two testimonys this week.

Ellison's most outrageous admissions in the SBF case are listed in the list below.

SBF approved Ellison's plan to deceive investors.

Ellison, the former CEO of Alameda, claimed that Sam was the one who gave her detailed instructions on how to use Alameda's funds, move capital, and interact with institutions and investors despite holding a business executive position at the trading company. In other words, Sam was the mastermind behind the scenes.

The Alameda team and Ellison are said to have been forced by Sam to "borrow as much money as we could," which resulted in $10 billion in unpaid third-party loans by mid-2022, which marked the beginning of the end for FTX/Alameda.

Ellison claimed to be relieved when things began to fall apart because she was no longer required to lie. According to her testimony, Ellison warned Sam about the condition of Alameda's balance sheets and the need to increase hedging on specific high-risk trades in 2022.

Rumors say that Ellison was "too careful" not to divulge any information to investors that was too specific or overt because she was worried that written correspondence might be used against her in court.

Bribes offered by the Chinese government.

The Chinese government froze Alameda's funds on Huobi and OKX in 2021 for $1 billion. Caroline said that SBF and his team came up with three possible ways to access the funds:.

To negotiate with Chinese officials and recover the funds, consult attorneys once more. Utilize the crypto addresses of Thai prostitutes to recover the money in a number of ways. Former Alameda employee David Ma proposed bribing Chinese officials with $100 million as a last resort.

Trabucco and Bankman-Fried gave the order to bribe Chinese officials in a Signal conversation that was later deleted (per Sam's orders), despite the fact that Ellison claims she was unaware of who those accounts belonged to.

Ellison also stated in his testimony that Handi Yang, an Alameda employee, objected to the decision before it was made because her father was a Chinese official. She replied, "Shut the fuck up," and Sam told her to do it now. Handi departs as a result, and a month later, Sam Trabucco—whose whereabouts are still unknown—asked in a Signal chat: "Did Handi's father immediately turn us in or something? " SBF laughed it off in response.

The Untidy Hair and the Crown Prince of Saudi Arabia.

In her second day of testimony, Ellison talked about Sam's attempt to get money from Saudi Crown Prince Mohammed bin Salman.

Sam gave Ellison the order to use "FTX's line of credit," or, to put it another way, the money from FTX's customers, to pay Alameda's creditors, which resulted in a debt cycle and financial mismanagement.

Sam's appearance was also mentioned. According to her statements, Sam's hair was "very valuable" to him because it was a crucial component of the story he was pushing, along with the most well-known Corolla in the cryptocurrency community, which he used as a PR stunt while residing in a $30M+ penthouse. Sam was worried about his reputation and how others would view him.

Balance sheets and altered documents.

As chaos erupted, lenders and investors started asking for Alameda's balance sheet. Ellison acknowledged that she produced seven different versions of the company's initial balance sheet with inflated numbers after significantly altering it.

Despite having liabilities in excess of $14.9 billion, Alameda's net asset value was only about $6 billion on paper. I didn't want to lie, but I also didn't want them to know the truth, said Ellison. ".

A tweet from SBF from June 27, 2022 that stated, "Backstopping customer assets should always be primary," was also deleted by lead prosecutor Danielle Sassoon. The rest is just a side issue. ".

Ellison answered Sasson's query with "No. At the time of this tweet, FTX's finances weren't sound enough to support customers. On the exchange, FTX actually had $15 billion in total deposits, as opposed to $6 point 9 billion in liquid assets.

What Follows Is What?

This trial may have significant effects on the cryptocurrency market, particularly on the regulatory front and the decline in investor confidence in the sector.

Ellison, the main witness for the prosecution, pleaded guilty while his ex-boyfriend did not, clearing himself of all blame and accusations. But Ellison is not the only businessman who opposes SBF. Gary Wang, Rayan Salame, Nishad Singh, and Ramnik Arora are the people whose names are on the list.

For seven federal offenses, SBF is currently facing a sentence of more than 110 years in prison. SBF's belief that he had a 5% chance of winning the presidency was the cherry on top. Even the scripts for Hollywood films lack such originality.

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