Former FTX Executive Caroline Ellison Alleges Sam Bankman-Fried Guided Her Toward Committing Fraud

Crypto news today: Sam Bankman-Fried Crypto scams

       "He directed me to commit these crimes," Ellison told the court. 

 

Crypto news today: Sam Bankman-Fried accused for Crypto scam

 

Caroline Ellison is a former FTX executive. She told the court that Sam Bankman-Fried, the founder and the CEO of FTX, told her to do bad things like fraud. She admitted to doing these bad things last year and is now helping the government. She said FTX took a lot of money, around $14 billion, and some of it was paid back.

"He directed me to commit these crimes," Ellison  — who last year agreed to a deal with prosecutors in which she pleaded guilty to charges including wire fraud, securities fraud and commodities fraud — told the court. 

Sam Bankman-Fried is accused of moving a lot of money from FTX to another company called Alameda. He's said to have used customer money for fancy houses and political donations. He says he didn't mean to do anything wrong.

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Caroline Ellison and another person from FTX already admitted they did wrong things and are helping the government. They both said that FTX was in trouble, even though Sam Bankman-Fried said it was okay. The defense says that Sam didn't want to trick anyone and that his business failed because of a big problem with cryptocurrencies.

"Sam didn't intend to defraud anyone," Mark Cohen, Bankman-Fried's attorney, said, casting his customer as a geek whose business was ruined in a crypto disaster that also wrecked other new companies.

Sam Bankman-Fried comes from a family of lawyers and has been in jail for more than a month because he tried to stop people from testifying against him.