Amid the ongoing legal saga surrounding Sam Bankman-Fried’s alleged wrongdoings and the collapse of FTX, the former CEO of Alameda Research, Caroline Ellison, delivered her testimony during the sixth day of the trial, delving into the intricate web of potential investments leading up to FTX’s financial turmoil.
In a courtroom revelation that had spectators on the edge of their seats, Caroline Ellison claimed that Sam “SBF” Bankman-Fried had pursued a daring strategy to secure equity for FTX by entertaining the notion of an investment from none other than Saudi Crown Prince Mohammed bin Salman, often referred to as MBS. This audacious plan was discussed as they explored methods of mitigating risks associated with Alameda’s investments back in the tumultuous year of 2022. According to Ellison, Bankman-Fried firmly believed that MBS could be a significant investor in the crypto exchange, a belief that ultimately led to profound consequences for FTX as it tragically crumbled in November.
Remarkably, the potential investment from MBS had even made its way into the annals of Caroline Ellison’s digital diary, aptly named “Things Sam is Freaking Out About.” This intriguing document, slated for presentation during the trial, included not only the ambition of “raising funds from MBS” but also the cryptic agenda of turning regulatory authorities against the crypto behemoth, Binance.
Mohammed bin Salman, a figure of immense wealth, wielding the dual roles of crown prince and prime minister of Saudi Arabia, had previously ventured into the world of blockchain gaming through the nation’s formidable sovereign wealth fund. Yet, his notoriety was also shadowed by allegations of involvement in the 2018 assassination of Washington Post journalist Jamal Khashoggi at the Saudi consulate in Istanbul.
As per a report from the reputable news outlet, Puck, it was disclosed that Bankman-Fried had a rendezvous with MBS on Saudi Arabian soil, a mere fortnight before FTX’s infamous plunge into bankruptcy. The stakes were high, with Bankman-Fried striving to amass a colossal $1 billion for FTX. In an unexpected turn of events, Saudi investors were willing to contribute approximately $250 million to this ambitious endeavor, an amount that would later mirror the bail sum that secured Bankman-Fried’s release after his arrest in the United States.
The courtroom drama is far from over, as Ellison’s testimony is set to continue well into the 11th and 12th of October, with SBF’s legal team preparing to cross-examine her. At the time of this text’s publication, Ellison had made shocking admissions of fraud during her tenure as the head of Alameda, largely attributing the misuse of customer funds to Bankman-Fried, who allegedly instructed her to provide deceptive financial information to Genesis lenders.
Prosecutors involved in Bankman-Fried’s legal battle anticipate concluding their case on either the 26th or 27th of October, following which SBF’s legal team will commence calling their witnesses. Bankman-Fried vehemently pleads not guilty to seven criminal counts related to FTX’s financial wrongdoing, with five additional charges looming for his trial scheduled for March 2024. The courtroom saga continues to unravel, with each day bringing new revelations and unexpected twists in this high-stakes legal drama.
