As the trial of Sam Bankman-Fried continued on Tuesday, Caroline Ellison, a former associate, took the stand in a Manhattan courtroom to make accusations against him, testifying that the former flamboyant crypto tycoon, known for his roles at Alameda and FTX, directed her to commit fraudulent activities.

This news comes just over a month before Benzinga's Future of Digital Assets conference on Nov. 14, where industry experts are set to discuss the transformative power of digital currencies. The event, which aims to shed light on the future of digital assets, now finds itself amidst a backdrop of these serious allegations, emphasizing the importance of regulatory clarity and ethical practices in the rapidly evolving crypto space.

Asked about her relationship with the defendant, Ellison stated they had known each other from their time at Jane Street and later at Alameda.

They also shared a personal relationship, having dated for a couple of years, Inner City Press reported.

Upon being asked if she had committed any crimes, Ellison admitted to fraud and implicated others in the wrongdoing. Pointing out Bankman-Fried in the courtroom, she stated that he was the one who directed her to commit these crimes.

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Diving deeper into the details, Ellison revealed that Alameda had misappropriated several billions of dollars from FTX customers, using the funds for investments.

When asked about the exact amount, she estimated that Alameda took around $10 billion, which eventually amounted to approximately $14 billion, to repay its lenders, according to Inner City Press.

Ellison admitted to presenting balance sheets that depicted Alameda as being less risky than its actual state, a tactic used to mislead the company's lenders.

When probed about the shortage of funds for customers in November 2022, Ellison reaffirmed that the money had been used to repay lenders.

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