Former Alameda Research CEO says ex-boyfriend largely blamed her for company’s financial collapse
Sam Bankman-Fried’s fraud trial entered its sixth day on Wednesday with more testimony from Caroline Ellison, his ex-girlfriend and the former CEO of the hedge fund associated with his collapsed cryptocurrency exchange. She testified that, during last year’s cryptocurrency crash, Bankman-Fried directed her to illegally appropriate FTX customers’ money.
When downturn began in May 2022, Ellison worried that the walls could soon come down on Alameda Research. Many of the hedge fund’s lenders had open-term loans, which meant they could call them – and ask for their money back – at any point. The crash left Alameda in the lurch after the value of its crypto assets evaporated. The two had broken up in early 2022. Ellison said she was avoiding social settings and one-on-one conversations with him when the crash began.
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