The fraud trial of FTX founder and CEO Sam Bankman-Fried continues Wednesday, with more testimony expected from Caroline Ellison, the 28-year-old former CEO of FTX's sister company, Alameda Research, and SBF's former on-and-off romantic partner.
On her first day of testimony Tuesday, Ellison said that she and Bankman-Fried, along with other associates, committed fraud and money laundering and that he set up the systems that allowed Alameda to siphon money from FTX customer accounts.
Bankman-Fried, 31, is charged with orchestrating a scheme to steal billions of dollars from customer accounts in FTX, his now-bankrupt crypto trading platform.
Ellison's testimony comes as part of a plea agreement with prosecutors. She pleaded guilty in the hopes of securing a lighter sentence. If she were to face more than 100 years in prison, she could face a maximum sentence of up to two years in prison.
SBF's testimony is crucial to the prosecutors' case that he used both FTX and Alameda as his own personal piggy bank. With money siphoned directly from FTX customer accounts, they allege that Bankman-Fried splurged on luxury real estate for himself and his family, placed risky wagers on digital assets, and funneled millions of dollars in donations to US political campaigns.
Ellison, a Stanford graduate with a degree in mathematics, told the court at a hearing in December that Alameda had a virtually unlimited borrowing facility in FTX, and that she agreed to keep the two firms' relationship hidden from investors and customers.
The trial will last up to six weeks. Bankman-Fried faces a possible prison sentence of 110 years in prison, if found guilty of all seven counts.