TechFlow reports, according to CoinDesk, that former Alameda Research CEO Caroline Ellison testified that SBF instructed her to use FTX customer funds to repay Alameda Research's lenders. Despite her reservations, she complied with his requests. Ellison said she had been worried since spring 2022 that Alameda's reliance on FTX customer funds could bring disaster to both companies. When SBF's crypto empire began to collapse, she felt relieved—because it meant she no longer had to lie.
Meanwhile, SBF attempted to secure financing for FTX through investments from Saudi Crown Prince Mohammed bin Salman (MBS). SBF stated that MBS had previously been a potential investor in the exchange. Ellison also mentioned that SBF had hoped to acquire Snapchat's parent company.
In addition, Caroline Ellison stated that she and several senior executives at FTX and Alameda "paid large bribes to Chinese officials" to unlock funds frozen on Chinese exchanges. After the FTX/Alameda team initially failed to negotiate with the Chinese government through lawyers to release the funds, they later attempted a scheme involving creating fake foreign exchange accounts using the identities of "Thai sex workers," but this effort also failed. Ultimately, after Ellison transferred $100 million into a cryptocurrency wallet—which she believed was somehow linked to Chinese government officials—the funds were secured.
