During the trial of Sam Bankman-Fried, the founder of crypto exchange FTX, shocking revelations emerged from the testimony of former Alameda Research CEO Caroline Ellison.
According to Ellison’s testimony, the crypto trading firm Alameda Research paid Chinese officials to unlock their trading accounts on OKX and Huobi in China. These accounts, valued at approximately $1 billion, were frozen in 2020 while Bankman-Fried was CEO.
In November 2021, Bankman-Fried claimed that a colleague, David Ma, who had connections in China, found a way to unfreeze the accounts. Ellison, who had become co-CEO of Alameda by then, made crypto transfers totaling around $100 million to $150 million to reopen the accounts, unaware that the payments were made to Chinese officials. Ellison stated that Bankman-Fried and Sam Trabucco instructed her through a Signal chat to make the payments.
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Before the accounts were reopened, Ellison revealed that Alameda employees explored various strategies to unlock the accounts, including involving lawyers and government officials. They even considered using Thai prostitutes to open accounts on the exchanges to facilitate fund transfers, but these efforts were unsuccessful.
One Alameda trader resigned due to her objection to paying bribes to Chinese officials, as her father held a government position.
The trial continues to uncover new details and allegations, shedding light on the actions and motivations of the individuals involved. The cryptocurrency community eagerly awaits further developments and the subsequent outcome of the trial.
Please note that the information provided here is based on recent news reports and is subject to change as the trial progresses.