• BlockFi CEO Zac Prince was the next one to take the stand in court after Alameda Research co-founder Caroline Ellison.
  • Caroline Ellison admitted to stealing FTX customer funds during Alameda's 'all-hand meeting' for staff.
  • Meanwhile, former Alameda co-CEO Sam Trabucco remains a person of interest after his mysterious exit in 2022. 

The October 13 session for the ongoing trial against Sam Bankman-Fried (SBF) kicked off with BlockFi CEO Zac Prince revealing that his lending firm, BlockFi, had lent up to $850 million in loans to FTX between July and early November.

Also Read: Caroline Ellison, former Alameda CEO reveals over $100 million in China bribes: SBF trial revelations

BlockFi CEO on SBF trial

Prince played down the significance of BlockFi’s loans to FTX, arguing they amounted to a “data point” in influencing the lender’s loans to Alameda Research, reported Mathew Russell Lee of the Inner City Press. 

Creating cryptocurrency loans on BlockFi’s digital asset lending platform required going through Know-Your-Customer (KYC) procedures, said Prince, adding that the borrower also had to transfer collateral to the BlockFi platform.

The BlockFi CEO also stated that at one point the FTX token FTT ranked as a top 10 asset by market capitalization, and the FTX exchange ranked high on metrics of reputation – though not on security or value.

BlockFi filed for Chapter 11 protection in New Jersey following the fallout of FTX exchange and Alameda Research collapse in November 2022. The crypto lender declared bankruptcy, with a commitment to focusing on recovering the funds it had placed on exchanges like FTX. However, FTX’s bankruptcy challenged BlockFi’s efforts to recover user funds.

A witness from law enforcement could be the next on the stand at the SBF trial, and could be held over until next week, Judge Kaplan hinted. 

Nishad Singh, a former FTX co-founder, and Ramnik Arora, one of the exchange’s most high-profile hires will also be taking the stand. Meanwhile, former Alameda co-CEO Sam Trabucco remains a person of interest after his mysterious exit in 2022.

With testimony of each witness, the knife seems to be sliding deeper into SBF, with no prospects for light at the end of the tunnel.

As regards Caroline Ellison and her incentive for cooperation, the prosecutors have agreed to support her with a 5k1 cooperator's letter at her sentencing, according to Russell Lee. 

 

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