Jurors in Sam Bankman-Fried’s fraud trial heard tapes Thursday of the infamous all-hands meeting in which fallen crypto kingpin Caroline Ellison’s ex-lover blamed him for using FTX client funds to cover losses at his failed hedge fund — and dodged questions about whether the move was a sudden “yolo” decision.
“Um….Sam I guess,” replied Ellison, the former CEO of Alameda Research, after nervously laughing when a colleague asked him who directed the trading firm to “borrow” more than $8 billion in funds from its sister cryptocurrency exchange.
“I think, FTX, like, basically, has always allowed Alameda to, like, borrow user funds as far as I know,” Ellison, 28, admitted in a recording of the November 9, 2022 meeting, which took place at Alameda’s Hong Kong office.
Prosecutors introduced the footage into evidence after briefly subpoenaing former Alameda employee Christian Dappi to appear at a Manhattan federal court hearing.
Drappi testified that he asked Ellison during the meeting whether the decisive decision to use FTX funds was “like a yolo thing,” referring to the saying, popular with millennials, that “you only live once.”
“What does yolo mean?” asked prosecutor Danielle Sassoon.
“It’s an acronym for you only live once,” Dappi replied.
Jurors at Sam Bankman-Fried’s fraud trial heard tapes of the infamous all-hands meeting with Caroline Ellison accusing him of using FTX client funds to cover losses at his failed hedge fund. Louis Lanzano/UPI/Shutterstock
But Ellison “dodged the question,” Dappi added from the stands.
Earlier, Ellison, in his third day of testimony, revealed that he had been dating one of his company’s other employees when FBI agents raided his home after FTX and Alameda — a fund he ran and Bankman-Fried owned — blew up.
“My boyfriend was there, and my mom’s cleaner who came once a week,” Ellison recalled of the November 2022 episode.
Federal agents seized computers belonging to Ellison, her parents and her boyfriend, Ellison testified.
“I think, FTX, like, basically, has always allowed Alameda to, like, borrow user funds as far as I know,” Ellison, 28, admitted in a recording of the November 9, 2022 meeting, which took place at Alameda’s Hong Kong office.Gregory P. Mango
The boyfriend is unknown.
Ellison previously testified that she dated Bankman-Fried, 31, on and off between summer 2020 and spring 2022.
He also told jurors on Wednesday that Bankman-Fried believed he did not have to follow moral codes such as “don’t lie” and “don’t steal,” because he was a “utilitarian” working for the “greater good” of society.
Ellison’s cross-examination Thursday from Bankman-Fried’s lawyers was mostly drama-free.
Prosecutors introduced the footage into evidence after briefly summoning former Alameda employee Christian Dappi to the stand in Manhattan federal court.Gregory P. Mango
Bankman-Fried’s defense attorney, Mark Cohen, spent most of the day questioning Ellison about his financial strategies and accounting practices while running Alameda.
On several counts, Cohen implied that Ellison should have mitigated Alameda’s risk by “hedging” the company’s financial bets.
Ellison admitted that the company made a “terrible mistake” – but insisted that her ex-boyfriend Bankman-Fried was the one who actually made the decisions on key Alameda decisions, such as repaying lenders with FTX user funds.
Ellison also revealed Thursday that Bankman-Fried had banned him from quitting Alameda months before FTX’s collapse.
Drappi testified that he asked Ellison during the meeting whether the decisive decision to use FTX funds was “like an old thing,” referring to the saying, popular among millennials, that “you only live once.” Gregory P. Mango
“He told me that I couldn’t, that I was too important,” Ellison said on the stand.
“I trust his opinion and I don’t want FTX and Alameda to collapse,” he added.
The hearing is set to resume on Friday morning with testimony from Zac Prince, CEO of crypto lender Block Fi, who reportedly learned of FTX’s financial issues months before the crypto exchange folded.
Bankman-Fried has pleaded not guilty to two counts of fraud and five counts of conspiracy.
Categories: Trending
Source: thtrangdai.edu.vn/en/
