In dramatic testimony, Caroline Ellison stated that Sam Bankman-Fried authorized $150 million in bribes to Chinese government officials to unfreeze $1 billion in funds belonging to Alameda Research.
The former Alameda CEO claimed the bribes were paid after attempts to hire lawyers to negotiate failed. The $1 billion in Alameda funds were frozen on Chinese exchanges Huobi and OKX amidst a 2021 money laundering investigation.
Ellison also alleged that Bankman-Fried first tried accessing the frozen funds by using the wallet identities of Thai sex workers before resorting to bribing officials. She stated SBF ordered employees to delete Signal messages related to the illegal China bribes.
During cross-examination, the prosecution’s questioning revealed startling accusations of corruption and criminal tactics by Bankman-Fried. Ellison’s dramatic testimony has further damaged SBF’s defense as he faces trial for FTX’s collapse.
The outrageous bribery claims lend credence to portrayals of Bankman-Fried’s poor ethics and willingness to break laws. The prosecution is utilizing Ellison’s insider knowledge to expose SBF’s alleged misconduct and undercut his plea of ignorance.
