In the gripping SBF trial, Caroline Ellison faces intense scrutiny regarding her decision not to hedge Alameda’s investments, a pivotal moment that has come to light. In earlier testimony, the blame for Alameda’s decline has been laid squarely on Ellison’s shoulders for her refusal to divest the fund’s riskier assets.
In a surprising twist, Ellison concedes that Sam Bankman-Fried, the FTX founder, had urged hedging in 2021, but she had resisted. It was a stance that would prove costly. Ellison reveals that Alameda suffered a staggering $100 million loss when Terraform’s token UST plummeted in value. In retrospect, she candidly admits, “I came to believe that Alameda should have sold it.”
The courtroom adjourns for a lunch break, with Ellison set to return for further cross-examination this afternoon.
Challenging Ellison’s Integrity
Mark Cohen, representing Sam Bankman-Fried, challenges Ellison’s testimony about her knowledge of the impropriety in using FTX customer funds for high-risk investments by Alameda. He inquires if she ever discussed these concerns with anyone. Ellison confesses that she raised the issue with Bankman-Fried but no one else.
