Fallen cryptocurrency king Sam Bankman-Fried ignored rules like “No Lying” and “No Stealing” because they didn’t fit his “utilitarian” moral code on how to achieve the “greater good,” his ex-girlfriend said. He testified at his fraud trial on Wednesday.
“He said he was a utilitarian and he believed that the ways people try to justify rules like ‘Don’t lie,’ ‘Don’t steal’ under utilitarianism didn’t work,” Caroline Ellison, 28, told the jury. in Manhattan federal court.
Bankman-Fried has been accused of stealing more than $8 billion in user funds stored on his FTX crypto exchange to cover losses at his Alameda Research hedge fund.
He told Ellison, his on-again, off-again girlfriend, that “the only moral rule that matters is what maximizes utility,” that is, “what creates the greatest good for the greatest number of people.”
The accused fraudster’s arrogant attitude toward lying – as long as it could achieve her “utilitarian” goals – made her more likely to twist the truth as well, he said.
“Over time, it made me more willing to do things like lie and steal,” Ellison admitted.
Ellison has pleaded guilty to fraud and has a cooperation agreement with prosecutors.REUTERS
The Stanford-educated math whiz, who served as Alameda’s CEO during the FTX collapse in November 2022, also testified that he followed Bankman-Fried’s orders to manipulate balance sheets sent to a lender concealing the multibillion-dollar drop. of Alameda in the wallets of FTX users.
“I really didn’t want to be dishonest, but I also didn’t want them to know the truth,” Ellison said of the falsified files sent to crypto lending company Genesis.
Genesis had been a major investor in Alameda and at the time was considering withdrawing $500 million of the funds it had in Bankman-Fried’s company. Alameda, Genesis and FTX subsequently filed for bankruptcy.
Bankman-Fried ignored rules like “No Lying” because all he cared about was his “utilitarian” moral code, Ellison said. Bloomberg via Getty Images
Ellison has already matter-of-factly told the jury that the disgraced crypto titan is to blame for deciding to steal the funds. She also broke down in tears Wednesday as she recounted how she felt when the truth came to light that Alameda was using FTX user funds to cover her losses during what she called “the worst week of my life.”
“I felt a sense of relief because I didn’t have to lie anymore and I could take responsibility for what I had done,” Ellison testified, looking toward the witness table.
The parents of the fallen cryptotitan, Stanford law professors Barbara Fried and Joseph Bankman, attended his trial.REUTERS
Prosecutors also revealed that Ellison responded with a sad face emoji after learning, in a group text message with Bankman-Fried and FTX engineering chief Nishad Singh, that clients were withdrawing funds at a rate of $120 million. dollars per hour.
“Ugh,” Bankman-Fried responded after Ellison sent her his sad face, proof showed.
Ellison will be questioned by Bankman-Fried’s lawyers on Thursday.
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Source: vtt.edu.vn