Caroline Ellison, star witness in Bankman-Fried trial, calls FTX collapse a ‘relief’

Ellison said at Sam Bankman-Fried’s fraud trial on Wednesday that the collapse of FTX had lifted the ‘dread’ hanging over her

Bankman-Fried did not subscribe to rules such as ‘don’t lie’ and ‘don’t steal’, according to Ellison, a former co-CEO of Alameda Research

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Caroline Ellison, former CEO of Alameda Research, exits court in New York on Wednesday. Photo: Bloomberg

Published: 12:30pm, 12 Oct 2023

Caroline Ellison, Sam Bankman-Fried’s confidant who has pleaded guilty to helping him take billions in FTX customer assets, testified at his fraud trial on Wednesday that she had been “terrified” the truth would come out about the cryptocurrency exchange and that its ultimate collapse last year brought an “overwhelming feeling of relief.”

Ellison, the former co-chief executive of Bankman-Fried’s cryptocurrency hedge fund Alameda Research, teared up describing the final days before the exchange declared bankruptcy in November 2022. Ellison said that while she felt “indescribably bad” about the harm caused to FTX customers and employees, the collapse lifted the “dread” hanging over her.

“I felt a sense of relief that I didn’t have to lie any more,” she said through tears.

The courtroom deputy handed Ellison a box of tissues.

In this courtroom sketch, Caroline Ellison reacts while being questioned during Sam Bankman-Fried’s fraud trial. Photo: Reuters

Prosecutors say Bankman-Fried plundered billions in customer funds to prop up Alameda, buy real estate and donate more than US$100 million to US political campaigns. FTX collapsed and declared bankruptcy in November 2022, shocking financial markets and destroying Bankman-Fried’s reputation as a responsible operator in the cryptocurrency industry.

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