ARSENIO TOLEDO

Cryptocurrency trader and former Alameda Research CEO Caroline Ellison recently testified at the trial of Sam Bankman-Fried that she was directed to donate $10 million to the presidential campaign of Joe Biden.

Alameda Research is the sister company of Bankman-Fried's now-defunct cryptocurrency exchange platform FTX. Prosecutors are alleging that Bankman-Fried defrauded customers and investors on FTX by siphoning their funds to Alameda Research, which served as a cryptocurrency hedge fund for Bankman-Fried, without their knowledge or permission. (Related: Sam Bankman-Fried's father complained about being paid only $200K a year when he expected an annual salary of $1M from FTX.)

As part of Bankman-Fried's trial, the prosecution rolled in its "star witness" in the 28-year-old Ellison, who was also briefly romantically involved with Bankman-Fried.

On Tuesday, Oct. 10, in a federal courtroom in downtown Manhattan, Ellison named Bankman-Fried as the ringleader of a fraud scheme at the cryptocurrency exchange and its associated hedge fund that stole more than $10 billion from customers and investors. She testified that she also committed fraud at Bankman-Fried's behest.

Ellison testified as part of a plea deal with federal prosecutors, which saw her plead guilty to several counts of wire fraud and conspiracy charges in December 2022 for her role in the collapse of FTX and Alameda.

Bankman-Fried spent tremendously on campaigns to garner influence

As part of Ellison's testimony, she admitted that Bankman-Fried directed her to donate more than $10 million to Biden in 2020 on his behalf.

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