This Wednesday, Caroline Ellison, former CEO of Alameda Research, continued to testify in the trial of FTX conducted by SBF. BlockBeats has excerpted the key points of her testimony and organized them as follows.

Caroline Ellison testified in court for the second time this week.

SBF instructed Caroline to misappropriate FTX funds to repay debts and provide Genesis with false balance sheets

In 2022, the downturn of the cryptocurrency market led to Alameda investors recalling their loans, including Genesis and BlockFi. Telegram chat records from June 13th show that Genesis requested a recall of a $400 million indefinite-term loan from Alameda. Caroline stated that SBF instructed her to repay the loan after clearly understanding Alameda's balance sheet, which means that Alameda can only use its credit limit on FTX and customer funds. "SBF knows this is the only way."

In addition, Caroline claimed that when Genesis' loan department head, Matt Ballensweig, asked Alameda to provide the latest balance sheet, SBF instructed him not to send the true balance sheet to Genesis. "SBF told me to come up with other ways to present the information. He wanted me to conceal some things on the balance sheet. So I prepared seven different balance sheets for him to decide (which one to use)." In the end, SBF chose the version that did not disclose that Alameda owed FTX clients 9.9 billion US dollars.

SBF's Notebook: Let Regulators Crack Down on Binance

Caroline Ellison revealed in court that she frequently updates a list called "things Sam is freaking out about," which includes "buying SNAP" and "raising funds" and "trading Japanese government bonds" with Saudi Arabian Crown Prince Mohammed bin Salman. In addition, Ellison mentioned that SBF had hoped regulatory agencies would crack down on Binance (the exact words were "let regulatory agencies crack down on Binance").

SBF: Sell Bitcoin if it rises above $20,000

According to Caroline's notes of the conversation with SBF, SBF once stated that if Bitcoin exceeds $20,000, he will continue to sell Bitcoin. (Reviewing the market trend, it can be found that from mid-June 2022 to November 2022, Bitcoin has been hovering around $20,000.)

SBF and Caroline's low-key personalities

Caroline claimed in court that she "tried to keep a low profile". However, after Sam Trabucco (formerly Alameda CEO) left, she had to use Twitter. SBF said that Alameda must have someone there to handle public relations. Regarding Twitter's operational strategy, SBF once proposed that attracting customers and investors is important. Therefore, SBF never combs his hair (to create a "typical Silicon Valley nerd" image), and said that driving a Toyota Corolla is more beneficial to his public image, so Caroline also drives a Honda.

Caroline Ellison testified under the supervision of SBF - Image source: Reuters

SBF Investment Media

In court, the lawyer asked SBF which media websites were invested in? Caroline replied: Semafor, SBF also mentioned Vox and Forbes. Regarding The Block, SBF said "This is a great cryptocurrency news website." (The Block CEO Michael McCaffrey resigned due to failure to disclose receiving a total of $43 million in loans from Alameda Research.)

崩盘期间联系过的潜在投资者

translates to

Potential investors contacted during the market crash

According to court documents, FTX had contacted investment institutions such as Dustin and Red Shirt during the market crash, and Caroline stated that these were potential investors.

Caroline Reviewing FTT's Crash, from Calm to "Relieved"

Caroline said that she felt a lot of pressure when CZ announced on social media that Binance decided to liquidate all FTT on its balance sheet. In response to CZ's tweet, Caroline and SBF decided to respond on Twitter. Caroline then responded on Twitter that she would buy all of Binance's FTT at a price of $22. Caroline admitted that this response was "misleading" and "just wanted to expose CZ's bluff - his goal is to harm FTX." At the same time, SBF also responded to the slow withdrawal issue on social media, saying it was due to "node issues."

On November 7th, FTT began to collapse. Caroline sobbed as she recalled that her emotions were very unstable that day. However, she felt relieved about the collapse. "I don't have to lie anymore."

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia