Bankman-Fried Lawyers Try To Blame Ellison For Alameda’s Crisis

Key Points:

  • Ellison stands by her fraud accusations against Bankman-Fried.
  • Bankman-Fried lawyers Mark Cohen extracted subtle admissions.
  • The case delves into Bankman-Fried’s role in Alameda and his relationship with Ellison.
According to Bloomberg, Caroline Ellison maintains her stance that FTX co-founder Sam Bankman-Fried orchestrated a multibillion-dollar fraud scheme, despite defense efforts to undermine her testimony.
Bankman-Fried Lawyers Try To Blame Ellison For Alameda's Crisis
Source: Bloomberg

Ellison’s Persistent Allegations in Bankman-Fried Fraud Case

The prosecution alleges that Bankman-Fried directed customer funds from FTX to its affiliate, Alameda Research, where Ellison served as CEO.

Bankman-Fried had earlier sought to discredit Ellison by leaking her private messages to the media, resulting in the revocation of his bail for potential witness tampering. During three hours of cross-examination, defense lawyer Mark Cohen managed to extract subtle admissions, such as Bankman-Fried’s limited involvement in Alameda’s daily operations and Ellison’s management concerns. However, these revelations did not significantly undermine the prosecution’s case.

One of the key arguments given by Bankman-Fried lawyers was that Ellison was responsible for Alameda’s financial decisions and risk management. While Ellison acknowledged that Bankman-Fried wasn’t always involved in daily operations, she emphasized that he provided overall direction.

Bankman-Fried Lawyers Struggles to Undermine Ellison’s Claims

Bankman-Fried lawyers successfully distanced Bankman-Fried from Alameda’s operations by highlighting that customer deposits continued to be wired to Alameda accounts after FTX opened its bank account. Ellison suggested that Bankman-Fried might not have been aware of these transfers.

Cohen also explored the impact of the pair’s romantic involvement on their professional relationship, pointing out that their communication was affected after a breakup in spring 2022. Despite personal challenges, Ellison confirmed that they continued to discuss Alameda through the messaging app Signal.

Bankman-Fried lawyers tried to emphasize differences in their personalities, with Ellison admitting that she was less driven and more stressed compared to Bankman-Fried. However, she acknowledged that some of his ambition had influenced her.

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