Building up his defense in preparation for his upcoming trial scheduled for the first week of October, former Chief Executive Officer (CEO) of FTX Sam Bankman-Fried plans to flip the table by pushing the blame of the exchange’s crash to his ex-girlfriend Caroline Ellison. As part of his scheme to justify himself, the 31-year-old billionaire shared a 250-page “essay.”
Bankman-Fried Prepares His Defense For October 3rd
The voluminous document includes details about events that led up to the implosion of the crypto exchange. According to some sources, Bankman-Fried intended to make the essay public on the X app but he never got to make the post.
While the document didn’t make it down to the X app, it was seen by The New York Times. The document provided insights into the former CEO’s state of mind in his eight months of detention and his intention for his upcoming trial. He went on to condemn Ellison for her part in the collapse of the now-defunct crypto exchange.
Ellison Was Incompetent
Firstly, he claimed she was incompetent and ill-equipped for the position that she held in the firm. Due to her lack of competence, Bankman-Fried stated that she failed to implement adequate trading strategies which could have prevented the company from falling into such market turmoil.
In addition, he stated that the Alameda Research ex-CEO avoided discussing risk management and this frustrated him to the point that it eventually contributed to their breakup. A few months ago, Bankman-Fried revealed a personal document that belonged to Ellison. The document detailed her time as Alameda Research CEO and her failed relationship with SBF.
FTX Execs Pleads Guilty
Markedly, Caroline Ellison and FTX co-founder Gary Wang has earlier pleaded guilty to the charges brought against them immediately after FTX collapsed.
Prosecutors have acknowledged that they have both been corporating and will testify against SBF in court. Two other FTX have equally pleaded guilty to fraud charges but only one of them has agreed to cooperate.
Apart from Ellison, co-CEO of Alameda Research Sam Trabucco was equally mentioned in Bankman-Fried’s essay as well as his discord with Ellison. Meanwhile, it is worth noting that no charge has been brought against the former co-CEO till now.