In a dramatic turn of events related to the price of bitcoin (btc) during the trial of Sam Bankman-Fried, founder of FTX, shocking revelations have emerged from the testimony of his ex-girlfriend and former director of Alameda Research, Caroline Ellison.
The crucial highlight of his statements centers on an alleged conspiracy to manipulate bitcoin prices by selling the cryptocurrency if it surpassed the $20,000 mark.
bitcoin Price Scandal Revealed
During the process, Ellison revealed damning conversations and documents that shed light on possible market manipulation.
In one case, he revealed a conversation note in which he wrote: “Continue selling btc if it exceeds $20,000,” suggesting a deliberate effort to suppress bitcoin prices. The prosecution pressed further, questioning the motive behind such actions and their impact on the market.
AUSA: What are these?
Ellison: Notes from a conversation with Sam. I wrote, keep selling btc if it exceeds $20,000.
AUSA: You wrote that FTX may rise. What does that mean?
Ellison: Raise capital by selling shares to get more money. To investors like MSB, the Saudi prince— Inner City Press (@innercitypress) October 11, 2023
Ellison’s testimony also revealed other troubling practices within the FTX ecosystem. He revealed that, under Bankman-Fried’s direction, Alameda Research had borrowed a staggering $13 billion from FTX clients through September 2022.
The borrowed funds were allegedly used to repay loans and as collateral for various investments, raising additional questions about financial transparency and potential conflicts of interest.
The Genesis Insolvency Crisis
The trial took an unexpected turn when Ellison highlighted conversations about Genesis, a retail lending platform.
According to Ellison’s testimony, Genesis was facing possible insolvency and requested $500 million from FTX. Ellison claimed that Bankman-Fried ordered him to send the funds to Genesis despite concerns about the honesty of the transaction.
All of these revelations cast a shadow over the integrity of FTX and its founder, Sam Bankman-Fried, who has been widely regarded as a prominent figure in the cryptocurrency industry.
Alleged bitcoin price manipulation and questionable financial practices raise significant concerns about market fairness and investor confidence.
As the trial continues, the cryptocurrency community and market watchers will be closely monitoring developments, awaiting further revelations about bitcoin price manipulation and potential repercussions for Bankman-Fried, Ellison and the cryptocurrency exchange. FTX.
bitcoin price has fallen below the $27,000 level, continuing its downward trajectory after failing to overcome the $28,700 resistance barrier on October 2. Currently, the cryptocurrency is down 2.7% in 24 hours.
Featured image from Shutterstock, chart from TradingView.com
