SBF And Caroline Ellison Conspired To Keep Bitcoin Under $20,000

SBF And Caroline Ellison Conspired To Keep Bitcoin Under $20,000

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Caroline Ellison, the former CEO of Alameda Research, has made explosive claims that Sam Bankman-Fried plotted to manipulate Bitcoin prices and keep it under the $20,000 mark. 

Ellison’s statements bring to the fore concerns about potential Bitcoin price tampering and financial wrongdoing during the FTX trial. 

A Staggering Claim 

According to Ellison, Bankman-Fried actively tried to sell Bitcoin in an attempt to artificially suppress prices and keep them below the $20,000 mark. Understandably, these claims have shocked the crypto industry. Ellison stated that Bankman-Fried had directed Alameda Research to keep selling BTC if the price moved above the $20,000 mark. This, Ellison claimed, was a deliberate attempt to keep the value of Bitcoin below the $20,000 mark. According to industry experts, such alleged manipulations could significantly impact the dynamics of the crypto markets. 

“Ex-girlfriend Caroline Ellison & Sam Bankman-Fried conspired to keep #Bitcoin under $20k by selling customer BTC.”

Ellison Admits To Improperly Using Customer Deposits 

Ellison also exposed FTX’s financial malpractices and admitted to using customer deposits improperly. Under the leadership of Sam Bankma-Fried, Alameda Research borrowed around $13 billion from FTX clients by September 2022. Ellison revealed that these funds were used to clear debt and act as collateral for other investments made by the company. This raises considerable questions about FTX and Alameda Research’s financial transparency. 

Ellison also talked about a particularly troubling episode, Genesis, a retail lending platform. According to Ellison, Genesis sought a staggering $500 million from FTX when facing insolvency. Despite considerable reservations about the sincerity of the transaction, Ellison stated that Bankman-Fried directed her to transfer the required funds to Genesis. She also added that Bankman-Fried ordered Alameda Research to buy and sell the native FTT token aggressively to defend its peg in the event of a price drop. 

Ellison’s testimony directly implicates Bankman-Fried in the illicit use of client funds. She also contends that she committed crimes along with SBF by misleading lenders. The testimony gives the clearest picture yet of how Alameda and FTX co-mingled operations and reckless business practices. Ellison has emerged as a star witness during the ongoing trial, with her statements dealing a major blow to Bankman-Fried’s defense. 

Judge Kaplan Denies Evidence Plea

As the trial continues, the defense strategy also comes to light. In recent developments, Judge Kaplan, who is overseeing the trial, rejected Bankman-Fried’s evidence plea. Bankman-Fried’s legal team had hoped to bring some evidence related to the role of counsel in formulating the loans given by Alameda Research during the cross-examination of Gary Wang, former FTX Chief Technology Officer. 

The move came after the defense had filed a similar plea to cross-examine Ellison, suggesting that Bankman-Fried had instructed her to enable auto-deletion features on her messaging accounts. The defense argued that highlighting Alameda or FTX’s legal teams’ involvement demonstrates no criminal intent.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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