How Sam Bankman-Fried’s ex-girlfriend and early recruit helped put the FTX founder behind bars for 25 years
Caroline Ellison, former chief executive officer of Alameda Research LLC, center, arrives at court in New York, US, on Tuesday, Oct. 10, 2023.
Yuki Iwamura | Bloomberg | Getty Images
In sentencing FTX founder Sam Bankman-Fried to a 25-year prison sentence on Thursday, Judge Lewis Kaplan cited testimony from Caroline Ellison, an ex-girlfriend of the defendant and early recruit into his crypto enterprise.
“I keep coming back to Ms. Ellison’s testimony that he knew it was wrong,” Kaplan said at the sentencing hearing in downtown Manhattan. “He knew it was criminal.”
Ellison was the star witness for the Department of Justice in its prosecution of Bankman-Fried. She agreed to a plea deal in December 2022, a month after FTX spiraled into bankruptcy.
As part of her testimony at the criminal trial late last year, Ellison supplied the government and the jury with text messages, documents and secret recordings that ultimately helped lead to Bankman-Fried’s conviction on all seven charges against him.
Manhattan U.S. Attorney Damian Williams said in a statement after the sentencing on Thursday that Bankman-Fried’s “deliberate and ongoing lies demonstrated a brazen disregard for his customers’ expectations and disrespect for the rule of law, all so that he could secretly use his customers’ money to expand his own power and influence.”
Ellison, who ran FTX’s sister hedge fund Alameda Research, pleaded guilty to two counts of wire fraud, two counts of conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering.
Though Ellison faces similar sentencing guidelines to Bankman-Fried, she’s expected to receive a far more lenient sentence due to her role as a cooperating witness.
Caroline Ellison is questioned as Sam Bankman-Fried watches during his fraud trial before U.S. District Judge Lewis Kaplan over the collapse of FTX, the bankrupt cryptocurrency exchange, at Federal Court in New York City, October 11, 2023 in this courtroom sketch.
Jane Rosenberg | Reuters
Ellison’s complicated ties to SBF
Ellison jumped into Bankman-Fried’s crypto orbit in 2017.
She’d been working as a trader at Jane Street, where Bankman-Fried got his start in finance. Bankman-Fried had reportedly convinced the Stanford graduate to ditch her Wall Street gig and join Alameda, when the hedge fund was still in its original Bay Area office.
Ellison spent years as Bankman-Fried’s on-again, off-again girlfriend and, at times, his roommate. She followed Bankman-Fried from California to Hong Kong and ultimately to the Bahamas, as Bankman-Fried repeatedly shifted headquarters for his crypto companies.
Michael Lewis wrote about Ellison in his book, “Going Infinite,” which covered Bankman-Fried’s rise and fall. In 2021, Ellison was promoted to CEO of Alameda, a job for which, according to Lewis’s reporting, neither Ellison nor Bankman-Fried found her particularly well suited.
“Caroline sensed that, even as Sam promoted her to CEO of Alameda Research, he disapproved of her job performance — and she shared his opinion,” Lewis wrote.
Lewis shared an excerpt from one of the memos that Ellison had sent Bankman-Fried. “It feels like I’m doing a much worse job managing Alameda than you would if you were working on it full-time,” she wrote.
In April 2021, Ellison tweeted about “regular amphetamine use” in a thread that also talked about the “herculean” effort it took for her to get off of her couch and go for a hike.
Court filings show that Ellison’s compensation paled in comparison to other top executives. Of the $3.2 billion in payouts to the exchange’s founders and other senior employees, FTX’s head of engineering, Nishad Singh, received $587 million, co-founder Gary Wang got $246 million and $2.2 billion went to Bankman-Fried. Ellison received $6 million.
Some of Ellison’s private diary entries were leaked by Bankman-Fried to The New York Times, which published a report about them last July, months before the trial. The act ultimately landed Bankman-Fried back in jail after Kaplan revoked his bail for alleged witness tampering.
In a Google document from February 2022 shared with the Times, Ellison wrote, “I have been feeling pretty unhappy and overwhelmed with my job. … At the end of the day I can’t wait to go home and turn off my phone and have a drink and get away from it all.”
She added, “It doesn’t really feel like there’s an end in sight.”
‘Trying to fix problems’
But it was in the courtroom that jurors got to hear Ellison for the first time.
U.S. Attorney Thane Rehn said during the trial that Bankman-Fried “was using her as a front” when “in reality, he was still calling the shots at Alameda.” Over the course of her multi-day testimony, Ellison helped prosecutors build a narrative that she was acting at the direction of Bankman-Fried in helping him steal customer money from FTX and using it to help prop up Alameda, which was suffering in the wake of the crypto winter.
Ellison said Bankman-Fried was still CEO of Alameda when the funneling of money began. She said she was under the impression that it was FTX customer money because the sums exceeded the exchange’s profits and the amount of capital it had raised.
In mid-2021, when FTX bought equity in the company back from rival exchange and early investor Binance, FTX used $1 billion in customer funds for the transaction, Ellison testified.
Ellison said she considered resigning from Alameda at various points from 2019 to November 2022.
On one of her Google Docs, Ellison had a section entitled “limiting factors in scaling,” which she said referred to things that were holding back Alameda. The first thing she listed was management, including a comment on her former co-CEO Sam Trabucco.
“I feel like neither Trabucco nor I has been doing a great job of pushing on stuff,” she wrote. “We’re in the mode of maintaining status quo and trying to fix problems.”
In terms of the commingling of operations between FTX and Alameda, Ellison admitted on the witness stand that the two firms didn’t have a proper “Chinese wall” separating the businesses.
During her testimony, Ellison mostly avoided eye contact with Bankman-Fried, staring down at her hands between questions and frequently flipping her hair over her left shoulder. Bankman-Fried also often looked away, with hands clenched.
Ellison told the jury that her breakup with Bankman-Fried in the spring of 2022 affected communications between the two of them. They would talk mostly over Signal despite living in the same apartment, and they largely avoided each other outside of work.
Danielle Sassoon, the assistant U.S. attorney representing the government, told Kaplan several times “the defendant has laughed, visibly shaken his head, and scoffed,” which she said could be having an effect on Ellison “given the history of this relationship, the prior attempts to intimidate her, the power dynamic, their romantic relationship.”
Caroline Ellison, former chief executive officer of Alameda Research LLC, arrives to court in New York, US, on Thursday, Oct. 12, 2023.
Bloomberg | Bloomberg | Getty Images
Secret recordings and texts
Of the hundreds of items entered into evidence during the trial, a bank of messages on encrypted app Signal was among the most calamitous for Bankman-Fried.
The government presented a series of Signal exchanges involving Bankman-Fried, Ellison, Wang and other top execs. In one such exchange, from Nov. 8, 2022, Ellison appealed to Bankman-Fried and other members of the inner circle, asking for help on optics and public messaging.
Prosecutors relied heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
She wrote, “multiple people internally asking me whether they should continue to make statements to external parties like ‘Alameda is solvent.’ should i suggest they stall instead? just stall on responding to their messages? or what?”
That day, FTX issued a pause on all customer withdrawals.
The following day, Ellison again looked to the group for guidance about how to handle an all-hands meeting for Alameda’s roughly 30 employees.
Ellison’s proposal was to tell them, “Alameda is probably going to wind down” and that there was “no pressure” to stay but help with “stuff like making sure our lenders get paid” would be “super appreciated.”
Bankman-Fried suggested she say something about there “being a future of some sort for those who are excited.”
Prosecutors relied heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.
Source: SDNY
Ellison ended up divulging a lot more than that in the staff meeting, a secret recording of which was played for the jury.
“Alameda borrowed a bunch of money,” which it used to make investments, Ellison said at the meeting. But as crypto prices fell, “FTX had a shortfall of user funds” and then “users started withdrawing their funds” and they “realized they would not be able to continue.”
When she was asked by a staffer whose idea it was to plug Alameda’s loan losses with FTX customer money, she said, “Um, Sam, I guess,” and giggled.
“FTX basically always allowed Alameda to, like, borrow user funds, as far as I know,” Ellison said.
Environment
Aptera (SEV) shows off assembly line for solar electric ‘car’, updates on battery and testing
Solar electric vehicle startup Aptera Motors released a new update today, giving us a first look at its validation vehicle assembly line, along with progress on battery production and efficiency testing as it moves closer to its goal of low-volume production.
The update comes just weeks after the company began trading on the Nasdaq under the ticker symbol $SEV.
The move, along with a deal to sell some shares, secured access to up to $75 million in financing for Aptera, which was struggling financially.
It enabled Aptera to get busy, and now the company has released an update about its progress over the last few weeks.
You can watch the full update video here:
On the personnel front, highlighting an expanded team across engineering, operations, and manufacturing. In the video, several new hires introduced themselves, including directors of supply chain and various engineers, signaling that the company is trying to staff up for the next phase.
But the meat of the update is on the manufacturing floor.
Aptera’s Validation Assembly Line
Steve Fambro, Aptera’s co-CEO, walked us through the facility, which he says is now “buzzing with activity”, with a few interesting time-lapse videos that showed progress.
The company has begun the buildout of its validation vehicle assembly line.
Unlike the hand-assembled prototypes we’ve seen in the past, Aptera says this new setup is designed to operate as a “normal vehicle manufacturing line” with a multi-step process. This includes receiving, inventory, kitting, and progressive installation of vehicle systems at individual stations.
At the heart of this new line is a large-scale precision assembly fixture. This is a critical piece of equipment for Aptera’s unique two-piece composite body structure.
Fambro explained the importance of this fixture:
“It’s a major step forward from the original hand-assembled approach we used on the BinC (Body in Carbon) for the first three validation vehicles. With this new fixture, we can now assemble BinCs with far greater repeatability and tighter control over final geometry.”
We also got a look at the frames, which Aptera says are robust and optimized for weight and strength.
Battery Production and ‘Gemini’ Testing
Another significant update is the battery assembly. Aptera’s battery partner, CTNS, is now on-site building battery modules.
This is the first time CTNS has assembled modules directly in Aptera’s facility. The video shows what look to be clean, precise modules ready for integration. This is a good sign for the supply chain, as the battery pack is often a major bottleneck for EV startups.
On the testing front, Aptera has been conducting internal efficiency evaluations with “Gemini,” its third production-intent vehicle.
The company claims preliminary results from combined drive cycles (high speed, stop-and-go, urban) are “encouraging.” They plan to move to more formal regulatory testing soon with the new and bigger fleet of validation vehicles.
Electrek’s Take
This is a nice progress update from Aptera. I am cautiously starting to get hope that Aptera might end up delivering a few of these vehicles.
Now, let’s be honest, there’s still a lot of work to do. The assembly line that Aptera showed today is clearly a work in progress.
$75 million might sound like a lot, but it’s nothing in the automotive manufacturing industry.
The question remains whether that capital will be enough to get them through this validation phase and into meaningful low-volume production.
As a disclosure, I have a small amount of Aptera shares from the crowdfunding days. I’ve always said I don’t see a significant chance of success, but I wish it, as I love the company’s ethos of efficiency.
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![Kia previews the EV2, its most affordable electric vehicle yet [Images]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/12/Kia-EV2-teaser-affordable-EV.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
With its official debut just around the corner, Kia offered a closer look at the EV2. The new electric SUV will be Kia’s smallest, most affordable EV to date.
Kia confirms the EV2 will debut as its most affordable EV
Kia confirmed that the EV2, its new electric B-segment SUV, will debut at the Brussels Motor Show next month. The EV2 will sit below the EV3 as Kia’s new entry-level electric car.
“With the EV2, we reaffirm our commitment to make electric mobility truly accessible to a broader audience – without compromise,” Kia Europe president and CEO, Marc Hedrich, said on Tuesday.
The EV2 will be built at Kia’s sole European manufacturing plant in Zilina, Slovakia, to speed up production and deliveries.
Designed, developed, and soon to be made in Europe, Kia is confident that the EV2 will play a “pivotal role” in the shift to cleaner, more sustainable travel.
Although it’s the smallest EV in its lineup, Kia promises it won’t feel like it when you’re inside. The interior design is inspired by “a picnic in the city,” according to Kia, with flexible seating and smart storage options that can open up to create a retreat from the busy city life.
Kia has yet to reveal prices or final specs, but given the EV3 is around 4,300 mm (169.3″) long, the EV2 is expected to be slightly shorter at about 4,000 mm (157″).
That’s about the length of the Hyundai Inster (3,825 mm). However, previous spy shots show the EV2 has a more upright stance than the Inster, closer to Kia’s larger SUVs, like the EV9 and EV5.
The EV3 is on sale in Europe, starting at about €36,000 ($42,000), so EV2 prices will likely start at closer to €30,000 ($35,000).
Based on Hyundai’s E-GMP platform, the Kia EV3 is available with 58.3 kWh and 81.4 kWh battery options, providing a WLTP range of 410 km (255 miles) and 560 km (348 miles), respectively. The EV2 is likely to be offered with similar battery pack options.
Kia will unveil the EV2 during a press conference on Friday, January 9, 2026, starting at 10:40 am (CET). Check back for more info leading up to the event. We’ll keep you updated with the latest.
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Tesla appears to be preparing to introduce yet another new camera sensor to its hardware suite, according to code found in the automaker’s latest firmware. While hardware improvements are generally good news, this latest discovery adds to the mounting evidence that Tesla is continuously moving the goalposts for self-driving, potentially leaving millions of owners with “older” hardware in the dust… again.
The discovery comes from longtime Tesla hacker and researcher @greentheonly, who frequently digs into Tesla’s software updates to find unannounced features and hardware changes.
According to Green, Tesla’s firmware now references a new sensor model: IMX00N.
Looks like Tesla is changing (upgrading?) cameras in (some?) new cars produced.
Where as HW4 to date used exterior cameras with IMX963, now they (might potentially) have something called IMX00N.
This would ostensibly replace or complement the Sony IMX963 sensors currently used in Hardware 4.0 (AI4) vehicles. The IMX963 is the 5-megapixel sensor that replaced the 1.2-megapixel Aptina sensors found in Hardware 3 cars just two years ago.
We don’t have the specifications for the “IMX00N” yet. It could be a custom Sony SKU for Tesla or a placeholder name for a new image sensor.
Here are the specs comparisons between the camera sensors in HW3 and AI4 Tesla vehicles:
| Specification | Hardware 3.0 (HW3) | Hardware 4.0 (AI4) | Technical Implication |
| Sensor Resolution | 1.2 Megapixels (1280 × 960) | ~5 Megapixels (2896 × 1876) | 4X Data Density. Allows detection of objects at >300m and digital cropping. |
| Sensor Model | Onsemi AR0136AT | Sony IMX490 (Estimated) | Flagship Automotive Sensor. Simultaneous HDR & LFM. |
| Color Filter Array | RCCC (Red-Clear-Clear-Clear) | RGGB (Red-Green-Green-Blue) | Semantic Fidelity. True color perception for signs, lights, and road markings. |
| Dynamic Range | ~110 dB | >120 dB (Single Exposure) | Contrast Mastery. No motion artifacts in tunnel exits or night driving. |
| Data Interface | FPD-Link III (Likely) | GMSL2 or MIPI A-PHY | High Bandwidth. Supports uncompressed 5MP streams at high frame rates. |
| Front Cameras | 3 (Main, Narrow, Wide) | 2 (Main, Wide) | Optical Simplification. Digital zoom replaces the physical telephoto lens. |
| Lens Coating | Standard | Deep Red IR Cut / Anti-Glare | Glare Mitigation. Reduces blinding from headlights and sun. |
| Heaters | Passive (Waste Heat) | Active Heating Elements | All-Weather Resilience. Rapid defogging and de-icing. |
| Retrofit | N/A | Impossible for HW3 cars | Fleet Fragmentation. HW3 cars are permanently hardware-limited. |
Electrek’s Take
Of course, you would expect Tesla to improve its vehicles, including its sensor suite, gradually. It is a good thing in and of itself.
There are three problems with Tesla updating its hardware suite for autonomous driving:
- It promised to all owners since 2016 that their vehicles have all the required hardware to achieve “Full Self-Driving,” and at the time, CEO Elon Musk said that it would mean “unsupervised self-driving.”
- It has yet to achieve that, and it promised to offer free hardware retrofit if needed, but it has yet to offer those.
- When Tesla launches a new autonomous driving hardware suite, it rapidly puts less effort into software that works with its previous hardware suite.
If the current cameras in HW4 (let alone HW3) are sufficient for Level 4 autonomy, why is Tesla spending resources to integrate a new sensor? The most logical answer is that the current sensors have limitations, whether it’s glare handling, low-light performance, or resolution, that limit the system’s reliability.
If that’s the case, can we expect Tesla to update all the vehicles that are supposed to have the hardware to reach level 4? I wouldn’t bet on it.
CEO Elon Musk already admitted that the HW3 computer won’t support it back in January 2025, almost a year ago, and instead of announcing a solution, Tesla owners were only promised a “mini version” of FSD v14, which itself is not the promised unsupervised self-driving.
At this point, it’s hard to put hope on Tesla doing the right thing here.
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