Caroline Ellison, Sam Bankman-Fried’s former partner, to star in crypto trial.

Caroline ‍Ellison: ⁤The Mousy ​Intern Turned Co-CEO

When Caroline Ellison,⁣ a mousy brown-haired girl with big glasses, takes the stand⁤ against Sam Bankman-Fried next week, the defense will ⁣likely try and blame her, at ‌least partially, for ‍the‍ dramatic implosion of FTX.

Just eight years ago, Ellison⁣ first crossed paths with Bankman-Fried while he was working at the Manhattan trading firm Jane Street Capital and⁢ she was ⁢an intern.

Bankman-Fried was told he had to teach Ellison as well as the rest of the summer interns how to trade.

Bankman-Fried had taken the job at the Wall Street company after ​he graduated from the Massachusetts Institute ⁤of Technology, ‍the same university where Ellison’s father taught economics and her mother was‌ a visiting lecturer.

Her first impression of Bankman-Fried wasn’t great. She ‍purportedly described him to friends ⁣and family ‍as a little cold⁤ and curt.

New‍ York wasn’t ⁤really his scene, and ‌Bankman-Fried soon traded in life on the East Coast for the West,⁢ where he ​started ‍drumming up plans for ‌Alameda ⁢Research, a cryptocurrency trading firm.

Ellison, who had ‌graduated from Stanford University with a degree​ in mathematics, moved to the East Coast, where‌ she worked for Jane Street. When​ her bosses sent her to her alma mater⁢ on a‍ recruiting trip in fall ⁣2017, she ​looked up ‌Bankman-Fried, and the two met for coffee in Berkeley.

He told her he was working on something he couldn’t ‌really⁤ talk about but then started talking. By the end of their caffeinated chat, he had almost convinced her to join him on his new venture, according to a new⁢ book by Michael Lewis, Going ​Infinite: The Rise and Fall of a New Tycoon.

In March 2018, Ellison kissed both her Jane Street job and New ⁣York⁤ goodbye⁣ and moved to​ the‍ Bay Area to work for Bankman-Fried.

Ellison has claimed she was shocked⁢ when she showed up at Alameda offices. Bankman-Fried had hired about 20 people ‌who knew nothing about trading or cared all that ​much about crypto. But ​instead of heading home, she‌ decided to stick it out.

Ellison⁤ quickly⁣ moved up the ranks and was named co-CEO ⁣of‌ Alameda. It‌ was⁢ during this time she was also⁢ linked romantically to Bankman-Fried, a self-proclaimed math nerd who routinely demanded his workers put ⁣in 18-hour days and played video games in front ‍of them‍ when they complained.

Less than two years after getting‌ Alameda ‌Research off the ground, Bankman-Fried and ‌his buddy Gary ‌Wang⁣ launched FTX as a platform to trade ‌crypto‍ tokens and derivatives. By October 2021, ‍FTX was soaring and​ managed to raise ⁢$420 million in venture trading.

As Bankman-Fried’s star rose — he hobnobbed with celebrities such ‍as pop star Katy Perry​ and her husband Orlando Bloom and ⁣made it onto the Forbes billionaires list — Ellison was going back and forth about their relationship. The two had dated on and off, and, according to private writings shown to the New York Times, ⁣Ellison was worried about ⁣”making ‍things⁤ weird” and “causing drama” at work.

“It doesn’t really feel like there’s an end in ⁤sight,” she wrote in a February 2022 document.

By ​the end of the year, Ellison, her boyfriend-boss, and other higher-ups in the company ⁢would⁢ be under ⁢arrest​ and​ tangled in one of ⁤the biggest financial‍ fraud ‌scandals in U.S. ​history.

Federal ‌prosecutors ⁣claim Bankman-Fried ‌siphoned⁢ billions of dollars ‍from unsuspecting customers to fund a⁣ lavish lifestyle and then lied to cover his tracks, and they said ⁤Ellison helped‌ him do it.

Bankman-Fried is facing seven criminal charges, including money laundering and securities fraud. If‌ he ⁣is convicted on all of the charges against him, he could ⁢be sentenced to 110 years in prison.

Four of his friends, including Ellison, have already pleaded guilty to⁢ similar⁤ charges. Bankman-Fried’s defense team has hinted ​they ​plan on throwing Ellison under ‌the‌ bus.

Ellison ‍knew Alameda had access to an unlimited line of credit​ at FTX‍ that allowed the company⁤ to borrow customer funds without posting collateral. When the crypto market dipped last summer, she ‍and⁢ other top brass agreed to⁤ borrow several billion dollars in customer funds from ‌FTX to repay Alameda’s loans to lenders. Ellison⁤ told the authorities⁣ she and Bankman-Fried ​were in cahoots and ‌put up misleading financial statements that hid ⁤what they had done.

Jurors‌ in the ⁤Bankman-Fried trial are expected to hear a recording of a meeting that took place on Nov. ‌9, 2022, between‍ Ellison⁤ and Alameda employees when she admits Bankman-Fried OK’d the⁢ funneling of customer funds to​ Alameda.

How ‌did Caroline⁢ Ellison’s background and experience⁣ contribute to her rise in the cryptocurrency world?

Elebrities and‍ became a prominent ‌figure in the cryptocurrency⁣ world — Ellison was right by his side, ⁢making strategic decisions and managing the day-to-day ‍operations ​of FTX.

However, the success of FTX was ‌short-lived. In recent months, the company has faced numerous controversies and regulatory issues, leading ⁣to significant losses for‍ investors. Many have blamed Bankman-Fried for the downfall of FTX, accusing him of mismanagement and taking unnecessary ⁢risks.

Now, as the legal battle against Bankman-Fried unfolds,⁣ Caroline Ellison finds ⁣herself ⁣in the spotlight. The defense will likely attempt to ​place some blame on her, ⁤citing her position as co-CEO and her involvement in the decision-making processes of the company.

But it is important to ⁢take a step back and consider‌ Ellison’s ⁢journey. She started as⁣ an intern, eager to ‌learn and develop her skills in trading. Over the years, she proved⁤ herself⁢ to be a capable and⁤ talented individual, quickly‌ rising⁣ through the ⁤ranks. Her educational background in⁢ mathematics⁤ and her experience at Jane Street⁢ provided her with a solid foundation for ⁣success in the financial world.

When Bankman-Fried approached her with his new venture, Ellison made a bold decision to join him. She took a risk, leaving her stable job and familiar surroundings in New⁤ York to embark on a​ new journey ‍in the​ Bay Area. Despite⁢ the challenges and a team that lacked trading expertise, she persevered and worked ‌hard to‌ help build‌ Alameda and later FTX.

It is unfair to simply attribute the success or failure of a company ‌solely​ to its‍ CEO. While Bankman-Fried may have been‌ the face of FTX, Ellison’s contributions ⁢cannot⁤ be overlooked. As co-CEO, she played a crucial role in shaping the company’s strategy, managing its operations, and navigating⁣ the complex world of cryptocurrency trading.

Furthermore, it is essential to consider the challenges and uncertainties that come with a⁢ rapidly evolving⁤ industry like cryptocurrency. The market can be volatile, and regulatory scrutiny is ever-present. While mistakes may have been made, it is crucial to remember that hindsight is always 20/20.

Caroline Ellison deserves recognition for her achievements and for​ taking on the⁣ responsibilities of‍ co-CEO at such a young age. She has shown resilience,​ determination, and the ability to adapt to challenging circumstances. Her ​journey from a mousy intern to a prominent figure in the cryptocurrency world is a testament to her talent ‍and dedication.

As the legal battle unfolds, it is important ⁤to approach the⁣ situation with an open mind and consider all the facts. Blaming one individual for the downfall‌ of a company is often an oversimplification of a complex situation. Caroline Ellison’s story‌ should serve as a‍ reminder that success and failure are⁤ rarely the result⁤ of a single person’s actions, but rather the culmination of various​ factors and circumstances.

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