In the most salacious testimony on Wednesday, Ellison said she and a handful of FTX and Alameda executives “paid a large bribe to Chinese officials” to secure funds locked on Chinese exchanges. This is the most explosive testimony ever. She spilled more than the court could digest; however, the defense is yet to counter the Ex-CEO on her claims.
Neither FTX nor Alameda was involved in the investigation – which Ellison said involved an entity that at one point traded with Alameda and was being probed for money laundering.
A Twisted Trail: Attempted Solutions or Unconventional Tactics?
Caroline Ellison’s testimony in the trial of Sam Bankman-Fried (SBF) has unveiled a complex web of events. According to Ellison, after Chinese authorities froze approximately $1 billion in funds associated with Alameda Research on exchanges Huobi and OKX in 2021, efforts were made over nearly a year to resolve the issue.
Initially, a local lawyer in China was engaged, but this approach yielded no results. Subsequently, a rather unconventional strategy was attempted, involving the creation of accounts under the identities of individuals believed to be Thai sex workers. The aim was to execute imbalanced trades between these accounts, allowing certain accounts to profit and withdraw funds. This unusual tactic, however, did not succeed.
A Cryptic Resolution: A $100 Million Crypto Payment
When these attempts failed, SBF became receptive to an alternative solution that one employee called “his way” of handling the situation. This led to a contentious exchange, where SBF allegedly raised his voice, instructing an employee, who happened to be the daughter of a Chinese official, to “shut the f*** up.” Eventually, Ellison claimed, Alameda paid approximately $150 million to Chinese officials, releasing the frozen funds.
Finally, the funds were secured after Ellison paid $100 million to a crypto account, which, to her understanding, was tied somehow to Chinese government officials.
The End is Yet to Come
The frozen funds and bribery create a vivid picture in the ongoing legal saga. The trial is not over yet, with Ellison slated for cross-examination, which promises to shed further light on this intricate narrative. SBF, facing multiple charges, continues to maintain his plea of not guilty. The trial, marked by its complexity and high-profile nature, remains a significant focal point in the crypto community.
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