
Caroline Ellison, former CEO of Alameda Research, retook the stand on Wednesday, after testifying that her former boss and ex-boyfriend, Sam Bankman-Fried, had directed many of FTX's now-public missteps.
By sending balance sheets that misstated Alameda's assets and liabilities to the crypto hedge fund's lenders and taking FTX customer funds and using them to repay debts or for investments to the tune of around $10 billion, Ellison opened her testimony on Tuesday.
When asked Tuesday what happened when customers tried to withdraw their money, Ellison said things fell apart in November 2022.
Over the course of her first day of testimony, Ellison walked through how Bankman-Fried, who was named as CEO of Alameda, still largely held control of the firm's decisions and how he disregarded her advice on issues like whether to expand FTX's investment portfolio.
Alameda was not able to sell large parts of the FTT token. She said that selling the token would have depressed the price enough to significantly hurt Alameda's credit with lenders.