Topic: Scams and Fraud. Caroline Ellison testified against Sam Bankman-Fried, telling the court he directed her to commit fraud. Reuters: Cheney Orr. Former cryptocurrency billionaire Sam Bankman-Fried's fraud case is unfolding in New York City, with a key witness taking to the stand. Her testimony could play a major role in convicting the year-old, which could see him imprisoned for decades.
He was the founder of crypto currency exchange called FTX which, at one point, was the second-largest cryptocurrency exchange in the world. He was later arrested in the Bahamas, extradited to the US and is now facing eight criminal charges including wire fraud, money laundering, and conspiracy to commit fraud on the United States.
He has pleaded not guilty, arguing that while he made mistakes running FTX, he never intended to steal funds. The daughter of two Massachusetts Institute of Technology economics scholars, Ellison was a high achiever, taking part in maths competitions throughout high school and college. She graduated from Stanford University and began working as a quantitative trader at US trading firm Jane Street, where Bankman-Fried was also working.
Like him, she had grown interested during college in the effective altruism movement, which promotes data-driven philanthropy and encourages talented young people to take high-earning jobs and give generously to meaningful causes. She told the FTX podcast she decided to join Bankman-Fried at Alameda despite lacking experience with cryptocurrencies to "maximise my impact". The two were also on-and-off romantic partners and together in a luxury penthouse in the Bahamas.
She told the court they were in a romantic relationship in summer After a break-up, they resumed the relationship in autumn before breaking up for good in spring , she said. Ms Ellison told the court the pair had a romantic relationship in the past.
