Sam Bankman-Fried FTX fraud trial continues: What to expect in the second week

Sam Bankman-Fried FTX fraud trial continues: What to expect in the second week

The second week of the Sam “SBF” Bankman-Fried FTX fraud trial will commence its hearings again on Monday, Oct. 9, with one of the main focal points anticipated to be testimony from Caroline Ellison.

Ellison, the former romantic partner of SBF’s and CEO of FTX-tied Alameda Research, is set to testify this upcoming week, possibly as soon as Tuesday. She was a part of Bankman-Fried’s inner circle and is expected to know details regarding the movement of customer funds between the two companies.

In her testimony, she is expected to highlight a November 2022 meeting with employees of Alameda when she admitted to using customer funds to repay creditors, which was given the green light by Bankman-Fried.

In December 2022, Ellison and former FTX executive Gary Wang both pleaded guilty for their respective roles in the alleged fraud that led up to the collapse of FTX.

Wang testified in the FTX fraud trial on Oct. 5, saying that, with the help of SBF: “We allowed Alameda to withdraw unlimited funds.” 

He added that Bankman-Fried did all the work on the front end — media, lobbying and investor relations — while Wang did the coding. “In the end, it was Sam’s decision to make [regarding any disagreements].”

Related: Sam Bankman-Fried’s jets are subject to forfeiture, says prosecution

Bankman-Fried has been charged with seven counts of conspiracy and fraud related to the fall of FTX, to all of which he has pleaded not guilty. Judge Lewis Kaplan is overseeing the case.

The first week of the trial, which began on Oct. 3, focused on the disappearance of $8 billion of FTX customer funds. In addition to testimony from Wang, the first week saw both the prosecution and the defense state their arguments, as well as testimony from Adam Yedidia on Oct. 5.

Yedidia is named as a close friend of Bankman-Fried and was also a developer at FTX.

Cointelegraph reporters are on the ground in New York for the trial of former FTX CEO Sam “SBF” Bankman-Fried. As the saga unfolds, check here for the latest updates.

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