SBF Plans To Repay FTX Customers With Financial Support From Saudi Crown Prince

Key Points:

• Ellison revealed that Bankman-Fried considered raising money from Saudi Crown Prince Mohammed bin Salman to repay FTX customer accounts.
• Bankman-Fried allegedly directed Ellison to funnel billions of dollars to sister hedge fund Alameda Research and create false balance sheets to deceive lenders and customers.

Caroline Ellison testified that one of the ways Sam Bankman-Fried to repay FTX customers was to raise money from Saudi Crown Prince Mohammed bin Salman.

Sam Bankman-Fried (SBF), the founder of FTX, is currently facing a trial in which Caroline Ellison, the star witness in the fraud trial of Sam Bankman-Fried, is testifying against him.

According to CNBC, Ellison revealed that one of the ways Bankman-Fried to repay FTX customer’s accounts was by raising money from Saudi Crown Prince Mohammed bin Salman (MBS).

Caroline Ellison Exposes Alleged Fraudulent Activities

Ellison, who pleaded guilty to fraud charges, previously disclosed that Bankman-Fried directed her and other staff members to funnel billions of dollars to sister hedge fund Alameda Research, defrauding FTX customers.

When facing a situation where crypto lender Genesis called back loans and requested to see the balance sheet, Bankman-Fried instructed Ellison to create “alternative” balance sheets that painted a better financial picture for Alameda. By omitting crucial information and hiding borrowed customer money, Bankman-Fried aimed to deceive both Genesis and FTX customers.

The internal balance sheet showed liabilities of $15.6 billion, while the numbers presented to the lender indicated just under $8 billion. Bankman-Fried even discussed the possibility of raising money from MBS to make FTX customers whole.

Coincu will continue to update the situation related to Sam Bankman-Fried, you can find out more information through this article.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.