In recent weeks, one of the most million-dollar scams in history and the most massive in terms of cryptocurrencies was recorded. The genius behind the billionaire robbery is Caroline Ellison, who together with her boyfriend, Sam Bankman-Fried, managed to get billions of dollars.
The 28-year-old and her 30-year-old partner crashed cryptocurrency platform FTX and now face federal charges and million-dollar bail, despite Ellison admitting in court that he “knew it was wrong” what they were doing, Forbes wrote.
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This is Caroline Ellison, the genius behind the FTX scam
The American graduated from Stanford University and started working as a junior trader at the quantum trading company Jane Street, where she met the person who would become her partner and change her fate: Sam Bankma-Fried.
The 30-year-old is a crypto-entrepreneur and approached Ellison with joining Alameda Research, a new digital currency hedge fund he was working for that would exploit Bitcoin price differences across countries.
“I was like, wow, that sounds really exciting. I mean, I love Jane Street. It was a really difficult decision to leave,” Ellison told Forbes in October 2021.
In this way, Ellison made the decision that would change her life and although she thought that she could receive in order to give, as was her vision, since she was oriented towards philanthropy, her dream was cut short when she changed her goals and carried out a billion-dollar scam.
Alameda Research’s Caroline Ellison is escaping a potential 110-year prison term through a plea deal. pic.twitter.com/dPVVi54AlV
— Wall Street Wolverine (@wallstwolverine) December 22, 2022
According to Ruth Ackerman, a math professor who taught Ellison at Stanford 10 years ago, Caroline was “bright, focused, very mathematical” and recalled being a Harry Potter fan.
On the other hand, Ellison, whose parents are MIT economics professors, took over from his partner as co-CEO in the company, since he would dedicate himself full time to growing the company.
FTX went from nothing to bankruptcy in four days and attention quickly turned to Alameda’s $10 billion in assets and his alleged practice of funneling FTX client deposits into risky speculative bets.
In this way, the biggest scam that has ever existed in the world of cryptocurrency was evidenced. Caroline Ellison, apologized for her role to clients and stock investors.
Caroline Ellison faced up to 110 years in prison
Ellison testified in Manhattan federal court: “I am truly sorry for what I did. I knew it was wrong” and although he faced up to 110 years in prison, he was free after posting $250 million bail after pleading guilty to seven counts on December 19.
“The charges include wire fraud and conspiracy to commit securities fraud, according to their plea agreement. The court released the transcript of his guilty plea on December 22,” Business Insider recalled.
In the guilty plea, Ellison acknowledged that they were diverting funds on customer deposits at FTX to repay Alameda loans.
For his part, Bankman-Fried, 30, faces eight criminal charges stemming from a scheme that authorities believe he orchestrated by misappropriating billions in customer deposits to fuel commerce in Alameda, pay off loans, buy goods estate, lend money to FTX executives and make millions in campaign contributions, according to Business Insider.
Bankman-Fried was already extradited last week from the Bahamas, where FTX was based, after being arrested on December 12. (YO)
Caroline Ellison just confessed to a judge that she and SBF stole billions of dollars from FTX users. Remember that this would not have been possible without scammers like delox or marciano who shamelessly promoted FTX.#Bitcoin#BTC#eth#Binance#shiba pic.twitter.com/YXAxpIcSDH
— Professor Maverik – Bitcoin and Cryptocurrencies (@Maverik007FX) December 23, 2022