Caroline Ellison, who plays a crucial role in the
case against FTX’s founder Sam Bankman-Fried (SBF), faced intense
cross-examination by the defense as she testified against her former boss. The
trial highlighted alleged complex events that led to the collapse of FTX and
Alameda Research.
Ellison, a key witness and SBF’s former girlfriend
has provided a detailed account of her early days at Alameda Research,
highlighting the exchange’s internal accounting practices. One notable point in
her testimony, as reported by Coindesk, was Alameda’s struggle with
accountants. From 2021 to 2022, the hedge fund allegedly engaged with several
accounting firms, only to discover that they were unable or unwilling to audit
the company’s books.
These findings emerged during Ellison‘s
questioning by defense counsel Mark Cohen. Initially, the responsibility for
preparing Alameda’s balance sheets rested with former FTX Digital Markets CEO
Ryan Salame. However, at some point, Ellison took charge of this task.
This cross-examination also delved into Ellison’s
early days at Alameda Research, where she acknowledged employee disputes before
joining in 2018. While the exact details of these disputes were not clear
during the trial, it was clear that they were a significant part of Alameda’s
operating history.
Additionally, Ellison’s ambition became a focal
point of discussion during her testimony. While she initially viewed herself as
lacking ambition in her career, her time at Alameda saw a shift in her outlook.
She recounted how SBF’s encouragement had spurred her to become
more ambitious during her tenure at the company.
During her cross-examination, Ellison
encountered intense questioning from Mark Cohen, SBF’s lawyer, CNBC
reported. Cohen’s persistent interruptions and requests for sidebar conferences
drew the attention of Judge Lewis Kaplan. Throughout her testimony, Ellison
maintained a demeanor that often avoided eye contact with the defendant, a trend
that continued from the previous days of the trial.
Caroline Ellison says she wasn’t an ambitious person until she met Sam Bankman-Fried https://t.co/goJUqSSuNd
— CNBC (@CNBC) October 12, 2023
Defense Cross-Examines Ellison
Ellison’s testimony also delved into the working
dynamics at Alameda, particularly her collaboration with Sam Trabucco, who
served as the co-CEO until August 2022. Ellison and Trabucco took on the
day-to-day responsibilities in the firm as early as 2020. By 2021,
SBF’s involvement at Alameda…
