Inside the FTX Collapse: Caroline Ellison Unveils Sam Bankman-Fried’s Panic and Plans

Chaos Reigns: Sam Bankman-Fried’s Last Ditch Efforts

In a courtroom drama that could rival any binge-worthy series, Caroline Ellison, the former CEO of Alameda Research, took the stand, revealing a whirlwind of frantic decisions made by Sam Bankman-Fried in the lead-up to the infamous downfall of FTX. According to Ellison’s notes, Bankman-Fried was in full freak-out mode, buying shares in Snapchat and attempting to raise capital from Saudi royalty.

Capital Chaos: The Saudi Prince and Crypto Aspirations

When the Terra ecosystem crashed in May 2022, it was enough to send Bankman-Fried into a tailspin, leading him to contemplate shutting down Alameda and seeking a whopping $1 billion from a Saudi prince known for his blockchain gaming interests. Talk about going big or going home!

Regulatory Regrets: Targeting Binance

Another noteworthy snippet from Ellison’s testimony included Bankman-Fried’s strategic desire to have regulators crack down on rival crypto exchange Binance. While the details on how he planned to pull this off remain murky, it was clear that FTX was looking to take a bigger bite out of the crypto market pie.

The Cost of Ambition: Alameda’s Struggles

Ellison didn’t hold back on revealing more about Alameda’s financial struggles. Under Bankman-Fried’s guidance, the firm had racked up massive debts, including a staggering $13.7 billion liability with FTX and $1.3 billion in open-term loans. All of this while he aimed to keep everyone happy—”Willie” potentially being a reference to his mentor William MacAskill! Talk about balancing a lot on your plate.