A star witness has given evidence at the trial of fallen crypto entrepreneur Sam Bankman-Fried – telling the court he directed her to commit fraud.
Caroline Ellison was the CEO of Alameda Research – a hedge fund linked to the doomed FTX exchange – and used to be the one-time billionaire’s girlfriend.
She told the court that Alameda used $10bn (£8.14bn) of funds belonging to FTX customers to repay debts and make investments without their knowledge.
Read more: How FTX founder went from star-studded £21bn empire
Ms Ellison, who has already entered a plea deal with prosecutors in the hope of a lesser sentence, described Bankman-Fried as a “very ambitious” young man who wanted to use his vast fortune to wield influence.
She went on to reveal that he thought he had a 5% chance of being US president one day.
During her appearance at the New York trial, Ms Ellison claimed Bankman-Fried had set up the systems that allowed customer funds to be misused.
She also alleged the 31-year-old had shared misleading information about the health of his business with lenders.
Prosecutors have accused Bankman-Fried of spending countless millions on luxury real estate and political donations, with Ms Ellison telling the court that he donated $10m (£8.14bn) to Joe Biden’s presidential campaign in 2020.
FTX used to be the world’s second-largest exchange, and before it suddenly collapsed last November, Bankman-Fried was worth $32bn (£26bn) on paper – rubbing shoulders with A-list celebrities and advising US politicians on how the industry should be regulated.
A court sketch of Sam Bankman-Fried
When the crisis hit, his net worth plunged by 94% in a single day – the biggest wealth collapse a billionaire has ever suffered in such a short space of time.
Bankman-Fried’s lawyers have…
