In a dramatic turn of events involving the Bitcoin price (BTC) during the trial of Sam Bankman-Fried, founder of FTX, shocking revelations have emerged from the testimony of his ex-girlfriend and former head of Alameda Research, Caroline Ellison.
The crucial highlight of her statements centers around an alleged conspiracy to manipulate Bitcoin prices by selling the cryptocurrency if it surpassed the $20,000 mark.
Bitcoin Price Scandal Unveiled
During the proceedings, Ellison disclosed damning conversations and documents that shed light on potential market manipulation.
In one instance, she revealed a conversation note in which she wrote, “Keep selling BTC if it’s over $20K,” suggesting a deliberate effort to suppress Bitcoin prices. The prosecution pressed further, questioning the motive behind such actions and their impact on the market.
AUSA: What are these?
Ellison: Notes from a conversation with Sam. I wrote, keep selling BTC if it’s over $20K.
AUSA: You wrote, that FTX may raise. What does that mean?
Ellison: Raise capital by selling equity, to get more money. To investors like MSB, the Saudi Prince— Inner City Press (@innercitypress) October 11, 2023
Ellison’s testimony also unveiled other concerning practices within the FTX ecosystem. She disclosed that under Bankman-Fried’s direction, Alameda Research had borrowed a staggering $13 billion from FTX customers by September 2022.
The borrowed funds were purportedly used to repay loans and as collateral for various investments, raising additional questions about financial transparency and potential conflicts of interest.
Genesis’ Insolvency Crisis
The trial took an unexpected twist when Ellison highlighted conversations regarding Genesis, a retail lending platform.
According to Ellison’s testimony, Genesis faced potential insolvency and requested $500 million from FTX. Ellison claimed that Bankman-Fried instructed her to send the funds to Genesis despite concerns about the honesty of the transaction.
All these revelations cast a shadow over the integrity of FTX and its founder, Sam Bankman-Fried, who has been widely regarded as a prominent figure in the cryptocurrency industry.
The alleged Bitcoin price manipulation and questionable financial practices raise significant concerns about market fairness and investor trust.
As the trial continues, the cryptocurrency community and market observers will closely monitor the developments, awaiting further revelations of the Bitcoin price manipulation and potential repercussions for Bankman-Fried, Ellison, and the cryptocurrency exchange, FTX.
The Bitcoin price has fallen below the $27,000 level, continuing its downward trajectory after being unable to break through the resistance barrier at $28,700 on October 2nd. The cryptocurrency is currently down by 2.7% within the 24 hours.
Featured image from Shutterstock, chart from TradingView.com