Caroline Ellison, the ex-CEO of Alameda Research, took the stand as the fifth witness for the prosecution in Sam Bankman-Fried’s six-week trial, claiming that the former FTX CEO directed her to commit fraud and money laundering crimes.
Ellison added that while she ran Alameda, she took several billion dollars from customers to invest in other projects and repay debts to lenders through an “essentially unlimited line of credit.”
Alameda took $14 billion in total from customers, but “some we were able to pay back,” Ellison testified. She also said she sent modified balance sheets to investors and lenders at the direction of Bankman-Fried so Alameda Research could “look less risky than it was.”
Ellison has pleaded guilty to multiple charges and accepted plea agreements, alongside Gary Wang, co-founder and CTO of FTX, and Nishad Singh, director of engineering at FTX. Wang testified in the trial from October 5 until midday on Tuesday.
Ellison and Bankman-Fried dated for a number of years on and off, she said, adding that they originally met while she was an intern at quantitative trading firm Jane Street.
Bankman-Fried is on trial for alleged fraud, among other charges.
This story is developing. Updates to follow.