Jurors at Sam Bankman-Fried's trial heard a recording of Caroline Ellison telling employees of his Alameda Research hedge fund that Bankman-Fried had approved using money that belonged to customers of his FTX cryptocurrency exchange to pay off the fund's loans.
"With crypto being down ... most of Alameda's loans got called," Ellison, Alameda's former chief executive, was heard on Thursday saying in the recording of the Alameda "all hands" meeting on Nov. 9, 2022. "And in order to meet those loan recalls, we ended up borrowing a bunch of funds on FTX."
Bankman-Fried has pleaded not guilty to two counts of fraud and five counts of conspiracy, and has said that while he made mistakes running FTX, he never intended to steal funds. During cross-examination earlier on Thursday, defense lawyer Mark Cohen asked her whether she learned before or after the "all hands" meeting whether there was an investigation into FTX. She said she did not recall learning about the probe before the meeting.
"The words 'I guess' were a vocal tic," Ellison said, adding she was feeling uncomfortable at the time. "I hadn't gone into the meeting intending to cast blame on anyone, but I wanted to be honest and open in answering my employees' questions."
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