Current:Home > Contact-usSam Bankman-Fried's lawyer struggles to poke holes in Caroline Ellison's testimony-InfoLens
Sam Bankman-Fried's lawyer struggles to poke holes in Caroline Ellison's testimony
View Date:2024-12-23 14:53:00
Sam Bankman-Fried's lawyer on Thursday offered a meandering cross-examination of his client's former girlfriend, the government's key witness in the criminal fraud trial of the FTX co-founder.
Caroline Ellison had testified on Tuesday and Wednesday that Bankman-Fried directed her to siphon money from FTX customer accounts to fund investments and trading strategies at Bankman-Fried's cryptocurrency hedge fund, Alameda Research. Ellison was the CEO of Alameda when it and FTX collapsed in November of last year.
Ellison spent much of her testimony walking the jury through how she repeatedly had to tap into the customer deposits at FTX to solve problems at the hedge fund or at the exchange. FTX deposits would be withdrawn to pay for new investments or political donations, or to hide steep losses on Alameda's balance sheet, she testified. All of this was done at the direction of Bankman-Fried, she said.
When the losses at Alameda became so big in November 2022, it became necessary to shut down the trading firm and sell FTX to potentially save the two entities from bankruptcy. Ellison held a all-hands meeting that week, which was recorded by an Alameda employee and given to government investigators.
In those audio tapes played for the jury, Alameda employees asked Ellison whether the decision to borrow FTX customer funds was a "YOLO" decision, an acronym meaning "you only live once," implying that it had been done impulsively.
No, Ellison told employees, on those tapes. It was done over a period of years.
Ellison, 28, pleaded guilty to fraud charges in December, when Bankman-Fried was extradited to the United States from the Bahamas. Bankman-Fried, 31, was the majority owner and CEO of FTX until the crypto exchange filed for bankruptcy on Nov. 11. He has pleaded not guilty to fraud charges.
Bankman-Fried's lead defense attorney, Mark Cohen, has argued Bankman-Fried didn't commit fraud and instead was trying to clean up a mess largely created by others, including Ellison.
Cohen, however, seemed to struggle in his questioning of Ellison, repeatedly changing topics and dates of discussion. At one point, Cohen apologized for referencing a wrong document. Another time he paused because he "lost my place."
Several times Judge Lewis A. Kaplan admonished Cohen, asking the attorney where he was going with his questions or what exactly he was talking about.
"Maybe this is a good time for a break," Cohen said after an hour of his cross-examination of Ellison.
Initially confined to is parents' Palo Alto, California, home under terms of a $250 million bond, Bankman-Fried has been jailed since August after Judge Kaplan concluded he had tried to imporperly influence potential witnesses, including Ellison.
—CBS News' Cassandra Gauthier contributed to this report.
- In:
- Sam Bankman-Fried
veryGood! (43)
Related
- Man who stole and laundered roughly $1B in bitcoin is sentenced to 5 years in prison
- Supreme Court candidates dodge, and leverage, political rhetoric
- TikToker Katie Santry Found a Rug Buried In Her Backyard—And Was Convinced There Was a Dead Body
- Georgia businessman convicted of cheating two ex-NBA players of $8M
- Chris Wallace will leave CNN 3 years after defecting from 'Fox News Sunday'
- Yankees' newest October hero Luke Weaver delivers in crazy ALDS opener
- Several states may see northern lights this weekend: When and where could aurora appear?
- 'CEO of A List Smiles' charged with practicing dentistry without license in Atlanta
- A Pipeline Runs Through It
- Major cases before the Supreme Court deal with transgender rights, guns, nuclear waste and vapes
Ranking
- NFL power rankings Week 11: Steelers, Eagles enjoying stealthy rises
- 2 sisters from Egypt were among those killed in Mexican army shooting
- Mexican immigrant families plagued by grief, questions after plant workers swept away by Helene
- United Launch Alliance's Vulcan rocket completes second successful launch
- Princess Kate to host annual Christmas carol service following cancer treatment
- Michael Madigan once controlled much of Illinois politics. Now the ex-House speaker heads to trial
- Why do dogs sleep so much? Understanding your pet's sleep schedule
- San Francisco’s first Black female mayor is in a pricey battle for a second term
Recommendation
-
See Megan Fox, Machine Gun Kelly, Brian Austin Green and Sharna Burgess' Blended Family Photos
-
Search for missing 22-year-old Yellowstone employee scaled back to recovery mission
-
Love Is Blind’s Hannah Reveals What She Said to Brittany After Costar Accepted Leo’s Proposal
-
Jason Momoa Gets Flirty in Girlfriend Adria Arjoa's Comments Section
-
Bo the police K-9, who located child taken at knifepoint, wins Hero Dog Awards 2024
-
Ex-Detroit Lions quarterback Greg Landry dies at 77
-
Don’t fall for fake dentists offering veneers and other dental work on social media
-
Ex-Detroit Lions quarterback Greg Landry dies at 77