Caroline Ellison, the former girlfriend of Sam Bankman-Fried, faced the disgraced crypto figure in court on Tuesday and candidly told jurors that he was responsible for the decision to misappropriate billions in FTX customer funds.
Ellison, aged 28, also clarified the reasons behind the end of her on-and-off relationship with the fallen crypto mogul, aged 31, accusing him of emotional detachment and lack of attention during their time together in a $35 million penthouse in the Bahamas.
“There was a general theme that I sort of wanted more from our relationship,” Ellison said. “I sort of felt like he was distant or not paying attention to me.”
She revealed that their relationship began in the fall of 2018 and lasted for about a year, from the summer of 2020 to the summer of 2021. Bankman-Fried was also her boss at work throughout their relationship, creating some uncomfortable situations.
During their time together, Bankman-Fried once made an unusual boast, suggesting that there was a 5 percent chance he could become President of the United States someday.
“President of what?” federal prosecutor Danielle Sassoon asked.
“The United States,” Ellison answered.
Caroline Ellison, who wore rectangular glasses, a mauve dress, and a gray blazer, did not make eye contact with her former partner as she entered the packed federal courtroom in Lower Manhattan.
She admitted to committing crimes during her tenure as the CEO of Bankman-Fried’s crypto hedge fund, Alameda, which the authorities allege misappropriated $8 billion of FTX users’ deposits to pay off lenders. Her testimony is part of a plea deal in the hope of receiving a more lenient sentence.
“He was originally the CEO of Alameda, and after, the owner of Alameda, and he directed me to commit these crimes,” said Ellison.
When asked about Bankman-Fried’s role in the alleged scheme, Ellison explained that he did not raise her $200,000 base salary after appointing her as the co-CEO of Alameda in October 2021.
During their “break,” Ellison received a $20 million bonus while leading the fund. However, this amount was significantly less than what Bankman-Fried and FTX co-founder Gary Wang paid themselves during the same period.
“I handled day-to-day decisions, but for any major decisions, I would always run it by Sam,” Ellison said.
Despite being the sole CEO, Bankman-Fried refused to grant Ellison partial ownership of Alameda and continued to make critical decisions for the fund, including the use of FTX customer funds without disclosure.
During her testimony, Ellison initially struggled to identify Bankman-Fried, who had transitioned from his typical attire of a T-shirt and cargo shorts to a suit with a different hairstyle.
“He’s over there, wearing a suit,” she said, pointing at her former lover.
