In the ongoing trial of Sam Bankman-Fried, the creator of FTX, shocking revelations have emerged from the testimony of Caroline Ellison, his former partner and ex-head of Alameda Research. Ellison’s testimony has uncovered a potential conspiracy to manipulate the price of Bitcoin, which has significant implications for the cryptocurrency market.According to Ellison, she presented a note indicating a directive from Bankman-Fried to sell BTC if it exceeded $20,000, suggesting a deliberate effort to prevent its valuation from surpassing this threshold. These allegations of market manipulation have raised concerns about the credibility of cryptocurrency markets and the role of key players like FTX.Ellison’s testimony also revealed that under Bankman-Fried’s leadership, Alameda Research borrowed a staggering $13 billion from FTX clients by September 2022. These funds were used for debt settlement and collateral for various investments. Such practices have raised questions about FTX’s financial transparency and operational conduct.Furthermore, Ellison shed light on a troubling incident involving the Genesis retail lending platform. Genesis, facing insolvency, sought a $500 million lifeline from FTX. Despite suspicions surrounding this transaction, Bankman-Fried allegedly instructed Ellison to facilitate the transfer. These revelations have sparked skepticism about FTX’s financial decision-making and prompted inquiries into the due diligence exercised by its leadership.Ellison also claimed that Bankman-Fried disregarded advice to protect Alameda’s investments during a cryptocurrency decline, instead increasing risk and blaming her for failing to hedge. She further alleged that Bankman-Fried sought investment from Saudi Crown Prince Mohammed bin Salman and aimed to acquire Snapchat for FTX.In addition, Ellison revealed that on November 7, 2022, FTX had only $1-2 billion in liquid assets remaining as client withdrawals surged. She felt fearful and debated whether to disclose FTX’s inability to fulfill all withdrawal requests. However, Bankman-Fried allegedly instructed the team to issue deceptive public assurances, which Ellison complied with by tweeting that FTX had undisclosed hedges.Judge Kaplan’s decisions have played a significant role in shaping the trial proceedings. Notably, he rejected a request from Bankman-Fried’s legal team to introduce evidence about the involvement of legal counsel in arranging loans extended by Alameda Research. He also denied the defense’s request to cross-examine Ellison regarding her activation of auto-deletion features on messaging platforms, as the defense aims to establish the absence of criminal intent in the alleged actions.Overall, the trial of Sam Bankman-Fried has garnered attention from legal practitioners and cryptocurrency enthusiasts alike, as the allegations and revelations have raised concerns about market manipulation, financial practices, and the credibility of key players in the cryptocurrency industry.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	negative
Relevance Score	1
People	Sam Bankman-Fried, Caroline Ellison, Judge Kaplan
Companies	FINRA, Coinbase, FTX, SEC, Alameda Research, eToro, Genesis, CySEC, FCA, MSB, Saudi Prince
Currencies	Bitcoin, US Dollar
Securities	None