The longtime executive in Bankman-Fried's companies and his former romantic partner, has probably been the most hotly anticipated witness in the case.
Ellison is a cooperating witness who hasThe witness testified that a romance began between her and the defendant in summer 2020, and that he told her his ambitions included becoming the U.S. President.At issue in the case is Alameda's use of FTX customer deposits both to make trades on the exchange, to make investments off the exchange, trade on other venues and to back ventures like SBF's aggressive political contributions.
Whether or not SBF knowingly directed his subordinates to use customer funds in fraudulent ways is crucial to the state proving the first two counts: wire fraud against customers and conspiracy to commit wire fraud against customers. Even after she assumed executive roles at Alameda, Ellison told the jury that the transition was mostly for appearances.Much of the direct examination from Assistant U.S. Attorney Danielle Sassoon concerned decisions that SBF was either party to, or that were made at his direction.
Ellison testified that the line of credit Alameda could use on FTX customer deposits was set up from the start of FTX.She said she believed that the funds borrowed were customer funds — and not FTX investor money nor FTX profits — for two reasons. First, sometimes they would borrow specific cryptocurrencies she knew wouldn't be on FTX balance sheets.The intrigue:
Early on, because SBF was the CEO as Ellison began using the line of credit, she left the worrying about doing so to him. However, as a trader on other exchanges it made her uneasy.To her knowledge, SBF never disclosed the practice to investors, customers or FTX's auditors.The first dramatic instance of a large borrow against customers for use off the exchange, she said, happened when SBF directed her and then trader Sam Trabucco to borrow funds to buy out Binance.
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