The second week of the criminal trial for former FTX exchange CEO Sam “SBF” Bankman-Fried is underway, with key witness Caroline Ellison taking the stand. Ellison, who was both SBF’s former romantic partner and the former CEO of the FTX-affiliated hedge fund Alameda Research, is expected to provide details about the shuffling of customer funds between FTX and Alameda. The trial has focused on the alleged fraudulent use of customer funds to repay FTX debtors. Ellison’s testimony will likely include information about a meeting in November 2022, where she admitted to using funds for these purposes with Bankman-Fried’s approval. Ellison and former FTX chief technology officer Gary Wang pleaded guilty to their alleged roles in the fraud, and were later hit with additional fraud charges by the SEC and CFTC. Ellison agreed to a plea deal with the U.S. Attorney’s Office, which allowed her to avoid major charges and a potential lengthy prison sentence. She revealed that she was aware of FTX customer funds being used and that Alameda had access to a borrowing facility through FTX. Ellison’s personal memos, including diary entries, are expected to be used as evidence against Bankman-Fried. SBF faces seven counts of conspiracy and fraud, to which he has pleaded not guilty. The trial is being overseen by Judge Lewis Kaplan.

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Information	Details
Geography	North America
Countries	🇧🇸 🇺🇸
Sentiment	neutral
Relevance Score	0
People	Caroline Ellison, John Lewis Kaplan, None, Gary Wang, Sam Bankman-Fried
Companies	United States Securities and Exchange Commission (SEC), Commodities Futures Trading Commission (CFTC), Chapter 11, Alameda Research, FTX exchange, Office of the U.S. Attorney for the Southern District of New York, Bahamas, U.S. Department of Justice
Currencies	FintruX
Securities	None