In a high-stakes trial unfolding in Manhattan, Caroline Ellison, once a close colleague and romantic partner to FTX founder Sam Bankman-Fried, stepped into the spotlight as a star witness. Ellison’s testimony, spanning three intense days, provided a revealing narrative of Bankman-Fried’s ascent and subsequent downfall in the cryptocurrency realm, a report by Financial Times said.
She depicted Bankman-Fried as the orchestrator behind a clandestine operation, instructing employees to cover their tracks and allegedly involved in the misappropriation of billions from FTX crypto exchange customers.
Detailing an emotionally charged encounter in their Bahamas penthouse, Ellison recounted a moment in August 2022 when Bankman-Fried, her ex-boyfriend and former boss at Alameda Research, reduced her to tears while discussing trading losses. She also described an incident where another female employee, objecting vehemently to an alleged scheme to bribe Chinese officials, faced Bankman-Fried’s expletive-laden outburst.
Despite her integral role in Bankman-Fried’s rise and fall, Ellison revealed feeling trapped and living in constant dread over potential consequences.
“I felt trapped. I was in sort of a constant state of dread… Every day I was worrying about the possibility of customers withdrawing from FTX… the possibility of this getting out… and the people who would be hurt by that,” Ellison expressed.
As the government’s key witness, Ellison’s testimony holds significant weight in the case against Bankman-Fried, who faces the prospect of spending the rest of his life in prison if convicted.
Throughout their on-and-off relationship, Ellison described feeling like an “unequal partner” due to Bankman-Fried being her boss and acknowledged being drawn into his moral worldview, centered on maximizing utility for the greatest number of people.
