Former CEO of Alameda Research Testifies Against Billionaire Sam Bankman-Fried in Federal Fraud Trial

Caroline Ellison, the former CEO of Alameda Research, continued her testimony in the criminal trial of Sam Bankman-Fried on Wednesday. Bankman-Fried, 31, is facing seven federal charges, including wire fraud, securities fraud and money laundering in connection with his oversight of the now-defunct FTX and Alameda Research, both of which filed for bankruptcy last year.

Ellison, who led the digital currency hedge fund connected with Bankman-Fried’s FTX, said she thought her onetime romantic partner’s philosophy made her “more willing to do things like lie and steal over time.” She recalled Bankman-Fried’s contention that he wanted to do the greatest good for the most people, and that edicts such as “don’t lie” or “don’t steal” had to be ignored at times.

In emotional testimony in Manhattan federal court on Wednesday, Ellison blamed Bankman-Fried for crafting justifications for conduct that was wrong and illegal. She said the collapse of FTX left her feeling “relief that I didn’t have to lie anymore.”

Bankman-Fried, who had a net worth estimated at $16 billion last year, is accused of using his companies to defraud investors and manipulate the market. If convicted, he could face up to 20 years in prison. The trial is expected to continue for several more weeks.

Ellison’s testimony is a key part of the prosecution’s case against Bankman-Fried. Her testimony is expected to continue for the remainder of the week.