SBF Trial: Witness Exposes Bankman-Fried's Alleged Fraudulent Directives

Caroline Ellison, former co-head of Sam Bankman-Fried's hedge fund, testified at his fraud trial that he instructed her to falsify the firm's financial statements to deceive a major lender during a cryptocurrency market downturn in 2022. Ellison stated that Bankman-Fried directed her to conceal liabilities on the balance sheet and send a falsified balance sheet to lender Genesis Global Capital. Prosecutors allege that Bankman-Fried misappropriated billions in customer funds to support Alameda Research, purchase real estate, and donate to political campaigns before FTX declared bankruptcy. Ellison, along with two other former members of Bankman-Fried's inner circle, has pleaded guilty to fraud charges and is cooperating with the Manhattan U.S. Attorney's office. Bankman-Fried has pleaded not guilty to fraud and conspiracy charges.