In recent moments, revelations have emerged during the trial of Sam Bankman-Fried, founder of FTX. The bombshell came in the form of testimony from his ex-girlfriend and former head of Alameda Research, Caroline Ellison, alleging a possible conspiracy to manipulate Bitcoin prices.
Ellison’s testimony has taken center stage, with a critical revelation at its core: an alleged scheme to manipulate Bitcoin prices by selling the crypto if it surpassed the $20,000 mark. This revelation has raised serious concerns about the integrity of the cryptocurrency market and the trustworthiness of one of its most influential figures.
During the trial, Ellison revealed a devastating piece of evidence: a conversation note in which he wrote: “Keep selling BTC if it goes over $20,000.“ This written note suggests a deliberate effort to suppress Bitcoin prices. The prosecution wasted no time in questioning the motive behind such actions and their potential impact on the broader market.
In a series of questions with the United States Attorney (AUSA), Ellison’s revelations continued. She described the notes as records of conversations with Sam Bankman-Fried and claimed that the intention behind suppressing Bitcoin prices was to “raise capital by selling stakes, to make more money.” These funds allegedly targeted investors including the Saudi prince and MSB, further highlighting the complex web of financial interests at play.
The intrigue doesn’t end there. Ellison’s testimony uncovered several other disturbing practices within the FTX ecosystem. Under Bankman-Fried’s direction, Alameda Research had allegedly borrowed a staggering $13 billion from FTX clients by September 2022.
AUSA: What are these?
Ellison: Notes from a conversation with Sam. I wrote, keep selling BTC if its over $20K.
AUSA: You wrote, FTX may raise. What does that mean?
Ellison: Raise capital by selling equity, to get more money. To investors like MSB, the Saudi Prince— Inner City Press (@innercitypress) October 11, 2023
These borrowed funds were allegedly used to repay loans and as collateral for various investments, leaving the cryptocurrency community questioning the transparency of these financial transactions and the possible conflicts of interest involved.
Possible FTX rescue of Genesis for $500 Million?
Adding an additional level of complexity to the developing narrative is the mention of Genesis, a retail lending platform. Ellison testified that Genesis faced possible insolvency and requested a hefty $500 million from FTX.
In a move that has raised suspicions, Bankman-Fried instructed him to transfer the funds to Genesis, despite lingering doubts about the honesty of the transaction. This incident has sparked debates about due diligence in the world of cryptocurrencies and the responsibilities of market leaders.
The integrity of FTX and its founder, Sam Bankman-Fried, once widely respected in the cryptocurrency industry, has come under scrutiny. Alleged Bitcoin price manipulations and questionable financial practices not only threaten the reputation of one of the world’s largest cryptocurrency players, but also have broader implications for market fairness and investor confidence.
As the trial continues, all eyes within the crypto community and among market observers are fixed on future developments, eagerly awaiting further revelations regarding the alleged Bitcoin price manipulation and the possible repercussions for Bankman-Fried, Ellison and the cryptocurrency exchange house, FTX.
At the time of this report, Bitcoin price has suffered a decline, falling below the $27,000 level and continuing its downward trend, after failing to overcome the resistance barrier at $28,700 on October 2, leaving the market in suspense about its future direction.
