In August 2022, months after they had split, she and Bankman-Fried were having a business conversation in the study at their sprawling $40m Bahamas penthouse, which they shared with other FTX and hedge fund employees. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.īankman-Fried blamed her for Alameda’s downfall, Ellison said Wednesday. For more information see our Privacy Policy. Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. When the crypto crash began, the two had broken up, Ellison said, and she had been avoiding speaking to him in spite of running businesses together. “I often shared feelings about being unhappy with our relationship” in messages sent to Bankman-Fried via Google Docs, she said. In her testimony, Ellison went into detail about her and Bankman-Fried’s relationship, describing how the entanglement saddened her and negatively affected her work. The hedge fund illegally used funds from FTX customers to repay the debts without notifying them, which was done at Bankman-Fried’s direction, according to Ellison. Alameda found itself billions of dollars short. While CEO, Ellison testified, she worried that Alameda – largely funded by loans – would be dealt a death blow if the lenders decided to collect, and they did. The day before, Ellison had provided a detailed chronology of Alameda’s shaky inner-workings, deeply intertwined with FTX, both of which came crashing down after crypto dipped in May 2022, weighed down by a $10bn deficit. In response to Cohen’s questions, Ellison revealed that she had considered resigning from Alameda over concerns of its borrowing. ![]() Alameda still wound up sending more than $450m to Modulo in spring 2022.Ĭohen asked about everything from Ellison’s treatment of risk to accounting techniques, at times implying that Bankman-Fried was a savvy businessman who erred in handing her the reins. “Yeah, I remember having feelings like that at some points,” Ellison said. “Didn’t part of you want to crush them?” asked Cohen. Modulo was run by a woman whom Bankman-Fried had also dated, Lily Zhang, previous court testimony revealed, and Duncan Rheingans-Yoo. I continued to have work communications with him over Signal.”Ĭohen intimated during his questioning that Ellison’s business decisions might have been impacted by her emotions toward Bankman-Fried, including her resistance to investing in Modulo, another crypto trading firm. ![]() I tried to avoid those and avoid much time with him in social settings. “I found it difficult to have in-person, one-on-one conversations with him. “After you and Mr Bankman-Fried broke up for the last time, did it affect your ability to communicate with him?” Cohen asked. Defense attorney Mark Cohen suggested that Ellison –Bankman-Fried’s on-again, off-again girlfriend – let heartbreak over their spring 2022 breakup impede business communications in a damaging way.
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