Testifying on the sixth day of Sam “SBF” Bankman-Fried’s criminal trial in New York, former Alameda Research CEO Caroline Ellison admitted to providing fudged numbers for review by Genesis.
According to reports from the courtroom on Oct. 11, Ellison claimed Bankman-Fried directed her to create “alternative” balance sheets on Alameda’s use of crypto exchange FTX’s funds. She reportedly testified that she had provided seven spreadsheets, one of which SBF presented to Genesis. The document did not reveal that Alameda had borrowed $10 billion from FTX.
“Sam said, ‘Don’t send the balance sheet to Genesis,’” said Ellison, according to reports. “We were borrowing $10 billion from FTX, and we had $5 billion in loans to our own executives and affiliated entities. We thought Genesis might share the info.”
Ellison returned to the witness stand at SBF’s trial after first appearing in the courtroom on Oct. 10. In contrast to her earlier testimony, prosecutors questioned the former Alameda CEO about her feelings surrounding her deception about the firm’s financials:
“I was worrying about customer withdrawals from FTX, this getting out, people to be hurt […] I didn’t feel good. If people found out [about Alameda using FTX funds], they would all try to withdraw from FTX.”
The long awaited courtroom sketch of Caroline Ellison testifying against SBF at his trial.
Hell hath no fury like a woman scorned. pic.twitter.com/37RZk9yt3j
— Ariel Givner, Esq. (@GivnerAriel) October 10, 2023
The former CEO answered in the affirmative when prosecutors asked her if she considered her actions to be “dishonest” and “wrong.” Ellison has largely placed the blame leading to the events surrounding the collapse of FTX on SBF due to his alleged direction surrounding the misuse of customer funds, while defense lawyers seem to be framing the former Alameda CEO as the instigator.
Related: Sam Bankman-Fried aspired to become US president, says Caroline Ellison
Ellison is expected to be a star witness for the prosecution in SBF’s trial following testimony from FTX co-founder and former chief technology officer Gary Wang. Former FTX engineering director Nishad Singh has not taken the stand but was named as a potential witness as part of an agreement with the United States Justice Department.
Prosecutors for Bankman-Fried’s criminal trial said they expected to rest their case on Oct. 26 or Oct. 27, following which the defense lawyers will start calling witnesses. SBF has pleaded not guilty to seven criminal counts related to fraud at FTX, as well as five charges he will face in a March 2024 trial.
Magazine: Can you trust crypto exchanges after the collapse of FTX?
The evolving relationship between Bitcoin and traditional financial markets is under renewed pressure as global investors flee risk assets amid intensifying US trade tensions. US-listed spot Bitcoin (BTC) exchange-traded funds (ETFs) recorded their fourth consecutive day of outflows on April 8, with more than $326 million in net redemptions across products, according to data from Farside Investors. BlackRock’s iShares Bitcoin Trust ETF (IBIT) saw the largest sell-off of over $252 million, its biggest daily outflow since Feb. 26. Bitcoin ETF flows, US dollars, millions. Source: Farside Investors The selling pressure follows US President Donald Trump’s April 2 announcement of sweeping reciprocal import tariffs, which triggered a historic $5 trillion wipeout in the S&P 500 over two days. Related: Bitcoin may rival gold as inflation hedge over next decade — Adam Back The delayed crypto market turbulence after the tariff-related sell-off in traditional markets highlights Bitcoin’s “evolving relationship with traditional markets,” according to Lennix Lai, global chief commercial officer at OKX exchange. Lai told Cointelegraph: “While falling 26% since January’s inauguration, Bitcoin’s relative resilience in the first two days following the tariff announcement — dropping 6% compared to Nasdaq’s 11% decline — suggests a nuanced dynamic emerging between crypto and conventional assets.” Bitcoin initially remained firmly above the $82,000 support level but plummeted below $75,000 on Sunday, April 6. BTC/USD, 1-year chart. Source: Cointelegraph Markets Pro Some industry leaders attributed Sunday’s sell-off to Bitcoin’s 24/7 liquidity mechanics, which made BTC the only large liquid asset available for de-risking over the weekend. Related: Bitcoin price can hit $250K in 2025 if Fed shifts to QE: Arthur Hayes While there is an “encouraging sign” of a weakening correlation between Bitcoin and equities, Bitcoin’s price trajectory remains tied to global liquidity conditions, Lai said, adding: “Though I see early signs of divergence, I believe Bitcoin remains fundamentally tied to global liquidity conditions, warranting caution amid potential market stresses — whilst gold remains as a hedge against geopolitical instability.” “What’s most significant here isn’t just price action but Bitcoin’s growing conceptual influence — people increasingly view it as a valid strategic reserve asset for diversification in chaotic traditional markets,” Lai added. Other analysts also see the growing money supply as Bitcoin’s main catalyst. “Bitcoin trades solely based on the market expectation for the future supply of fiat,” according to Arthur Hayes, co-founder of BitMEX and chief investment officer of Maelstrom. Magazine: Bitcoin ATH sooner than expected? XRP may drop 40%, and more: Hodler’s Digest, March 23 – 29
The European Securities and Markets Authority (ESMA) has warned that crypto will increasingly threaten traditional financial markets’ stability as the industry grows and becomes more entwined with traditional finance players. “We cannot rule out that future sharp drops in crypto prices could have knock-on effects on our financial system,” ESMA’s executive director Natasha Cazenave said in an April 8 statement to the Economic and Monetary Affairs Committee. Cazenave noted, however, that crypto currently only accounts for 1% of global financial assets and is not yet significant enough to cause major “spillover effects” into traditional financial markets. She warned that interconnections between crypto and traditional markets are rapidly growing — particularly in the more crypto-friendly US — and called for closer monitoring. “Crypto-assets markets evolve quickly, in an often unpredictable manner, and we need to keep a close eye on these developments,” Cazenave said, adding: “Turmoil, even in small markets, can originate or catalyze broader stability issues in our financial system.” Cazenave’s concerns ranged from spot crypto exchange-traded funds and stablecoin use to hacks, scams and scandals — highlighting the recent $1.4 billion Bybit exploit and FTX’s collapse in November 2022. Today in the ECON Committee, the role of crypto assets in relation to financial market stability was discussed. The European Central Bank (ECB) and the European Securities and Markets Authority (ESMA) were present. I raised a critical question about the digital euro.… pic.twitter.com/KST7FRBhFF — Engin Eroglu (@EnginEroglu_FW) April 8, 2025 The European Union has already implemented several measures to safeguard against crypto risks, most notably the Markets in Crypto-Assets (MiCA) regulation that was rolled out last year. While Cazenave said MiCA marked a “breakthrough” for crypto regulation, she added that there is “no such thing as a safe crypto-asset” and that more rules may need to be implemented to mitigate future risks. Related: EU could fine Elon Musk’s X $1B over illicit content, disinformation Her comments come as both crypto and the stock markets have experienced double-digit falls over the last few weeks as the Trump administration continues to follow through on its tariff plans. While crypto adoption has accelerated in the US, Cazenave noted that over 95% of European banks remain on the sidelines, with no involvement in crypto-related activities. However, retail participation is on the rise, with an estimated 10% to 20% of European investors having crypto exposure, which is in line with growing global interest, Cazenave said. Most reports measuring US crypto adoption suggest that the range of adoption is between 15% and 28% of the population. Magazine: Financial nihilism in crypto is over — It’s time to dream big again
Former NBA star Shaquille O’Neal has been granted final court approval to settle a class-action lawsuit for $11 million with Astrals non-fungible token (NFT) buyers. Florida federal court judge Federico Moreno granted approval of the settlement between O’Neal and the class group led by Daniel Harper in an April 1 order made available on April 8. The deal created a fund of up to $11 million for eligible class members and awarded $2.9 million in attorney fees and costs. All those who purchased Astrals NFTs from May 2022 to Jan. 15 and those who purchased the project’s native GLXY tokens up until mid-January are eligible. “The fee sought by lead class counsel has been reviewed and approved as fair and reasonable by plaintiffs,” Moreno’s order read. O’Neal was hit with the lawsuit in May 2023 over his founding and promotion of the Solana-based Astrals NFT project, which the suit claimed was an “offer and sale of unregistered securities.” The class group said they bought Astrals NFTs and “suffered investment losses” due to O’Neal’s “conduct” in promoting the project. In August, Judge Moreno recognized that the class suit had alleged that the former NBA player was a seller of the NFTs. O’Neal agreed to the settlement in November. Screenshot from court order on final settlement. Source: Courtlistener The Astrals NFT collection consisted of 10,000 unique 3D digital collectibles created in April 2022 by the artist Damien Guimoneau in a Solana-based project that promoted a virtual world where users could socialize and play with others, including the basketball star. Related: NFT sales plunge 63% in Q1, but Pudgy Penguins, Doodles buck trend There has been no activity or sales from the collection for the past two years, according to NFT marketplace OpenSea. Overall, NFT sales are still in deep bear market territory, with just $27 million sold as of April 7, down from more than $2 billion per week at the end of 2021, according to CryptoSlam. Magazine: 3 reasons Ethereum could turn a corner: Kain Warwick, X Hall of Flame
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Bitcoin remains tied to global liquidity conditions
Europe lags US in crypto adoption
NFT sales slump
