- The defence is expected to continue its cross-examination of FTX co-founder Gary Wang this week.
- Former Alameda CEO Caroline Ellison is expected to take the stand over the next few days.
Happy Tuesday!
Sam Bankman-Fried’s trial enters its second week, with FTX co-founder Gary Wang expected to return to the witness stand after his bombshell testimony on Friday. The prosecution will also call up another star witness — Caroline Ellison, the former CEO of Bankman-Fried’s crypto hedge fund Alameda Research as well as his ex-girlfriend.
Let’s dive into it.
Two crucial testimonies
Big week, big witnesses, big drama a’hoy.
First up, the defence is expected to resume its cross-examination of Wang after the FTX co-founder told prosecutors last week that the exchange “allowed Alameda to withdraw unlimited funds” and that the firm had been given a $65 billion line of credit.
Explosive as his testimony may have been, it may only be the overture to Ellison taking the stand this week.
Ellison was the first member of Bankman-Fried’s inner circle to strike a plea agreement with the government. She had pleaded guilty to multiple wire fraud and conspiracy charges.
Opening statements made by Bankman-Fried’s attorney suggest that the defence’s strategy may be to blame FTX’s collapse on Ellison.
“As the majority owner of Alameda, [Bankman-Fried] spoke to Ms Ellison, the CEO, and he urged her to put on a hedge, something that would protect against such a downturn. She didn’t do so at the time, and this also becomes an issue later on, when the storm hit,” Bankman-Fried’s lawyer said.
What may make her testimony even more incendiary is the fact that Bankman-Fried was accused of leaking her diary to the New York Times this summer, which the judge presiding over the trial said may amount to witness tampering, a federal crime.
Crypto market movers
- Bitcoin fell 0.3% over the past day to trade above $27,660, while its up 0.2% over the last week.
- Ethereum slipped 1.5% to $1,590. The second largest cryptocurrency by market capitalisation is down 4.5% over the last week.
- Altcoins were again leading the moves lower. Ripple-affiliated XRP and Solana’s SOL both dropped by 2.4% over the past 24 hours.
What we’re reading
- ‘Manipulative’ SBF led Alameda’s co-founder to quit in 2018 — who is Tara Mac Aulay? — DL News
- SBF lawyers brace for most important witness in second week of trial: TRM Labs’ Ari Redbord — DL News
- How SBF’s fraud trial will slow US crypto bills — DL News
Tom Carreras is a Markets Correspondent at DL News. Got a tip? Reach out at tcarreras@dlnews.com
