Sam Bankman-Fried’s reported ex-girlfriend was likely among the first people to turn on him and help prosecutors build their fast-moving fraud case in the epic, $8 billion-plus collapse of his FTX cryptocurrency exchange, a former US government lawyer said Wednesday,
Caroline Ellison, 28, is a key figure in the case as she was at one time CEO of the Alameda Research hedge fund — which authorities claim received billions of dollars that Bankman-Fried, 30, diverted from FTX.
“She would have among the greatest incentives to cooperate, as it was seeming likely that in his effort to exculpate himself, Bankman-Fried would try to finger her,” former Securities and Exchange Commission lawyer Howard Fischer told The Post.
Oh Sammy you better get used to your new cell mate Bubba.
Caroline Ellison Was Alameda’s CEO, But Officials Say Sam Bankman-Fried Ran It
When Sam Bankman-Fried told his side of the story of what happened to FTX, the crypto exchange that went bankrupt on his watch last month, he often pointed the finger elsewhere. His favorite target was Alameda Research, the trading firm where Caroline Ellison was chief executive.
This week, the U.S. government pointed back at Mr. Bankman-Fried.
Update – This is new info – Bahamian authorities were tipped off by top Bankman-Fried associate
One of Sam Bankman-Fried’s close associates told Bahamian regulators in the days before FTX collapsed that the now-disgraced founder had likely funnelled customer money to his hedge fund, a move that helped accelerate the 30-year-old’s downfall.
Ryan Salame, co-chief executive of FTX’s Bahamas operating entity, informed the country’s securities commission on November 9 that FTX customer funds had been used to cover losses at Alameda Research, according to Bahamian court records(opens a new window).
Salame identified Bankman-Fried and two other FTX executives as potentially being responsible, an allegation that triggered a referral to the Bahamas police and ultimately the appointment of liquidators.
So it looks like Caroline was not the first but among the first. I wonder if she made the call or if someone came knocking with some friendly advice.
