Caroline Ellison, once the CEO of Alameda Research hedge fund, is poised to testify as the government’s next witness in the trial against the former crypto mogul. This follows the testimony of Gary Wang, a former FTX executive. The Department of Justice announced the conclusion of Wang’s testimony on Tuesday and anticipates Ellison’s appearance in court, media reports said.
Both Ellison and Wang pleaded guilty to multiple fraud charges in December of the previous year. The court will be on a break for Columbus Day (Indigenous People’s Day) on Monday and will reconvene on Tuesday at 9:30 a.m. ET.
The recent scrutiny on Alameda’s role in FTX intensified during Wang’s testimony. As a former key figure in Bankman-Fried’s empire, Wang disclosed that Alameda had “special privileges” at FTX, enabling the crypto hedge fund to utilize $8 billion of exchange customers’ funds.
Wang, co-founder of both companies with Bankman-Fried, revealed that in July 2019, at Bankman-Fried’s directive, he developed code allowing Alameda’s FTX account balance to go below zero—a unique and undisclosed feature exclusive to Alameda.
Wang, the first among at least three witnesses from Bankman-Fried’s inner circle who have pleaded guilty to financial crimes, is now providing testimony against the alleged fraudster in his ongoing criminal trial. Caroline Ellison is slated to be the second witness in this lineup.
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