This sparked speculations that she was in New York to meet with law enforcement officials. Legal experts even claimed that she likely flipped on Bankman-Fried and provided the government with information that led to his arrest.
Former Securities and Exchange Commission (SEC) lawyer Howard Fischer said Ellison was likely among the first people to turn on SBF and help prosecutors build their fast-moving fraud case in the controversial $8 billion collapse of his FTX cryptocurrency exchange company. The 28-year-old Ellison is said to be a main figure in the case as she was at one time the head of FTX's sister enterprise, which allegedly received billions of dollars from FTX.
"She would have among the greatest incentives to cooperate, as it was seeming likely that in his effort to exculpate himself, Bankman-Fried would try to point her," Fischer said. The lawyer emphasized that the "speed of the indictment and the breadth of the charges" against SBF meant "someone relatively senior is cooperating with the federal authorities in exchange for leniency for their own potential misconduct."
Moira Penza, a former federal prosecutor from the Eastern District of New York, agreed that someone like Ellison would have a clear incentive to cooperate. "For someone like Ellison who was in SBF's inner circle and who has already publicly implicated herself, there is a strong incentive to cooperate early," Penza told the New York Post via an email. "It is not unheard of in [the Southern District of New York] for people who cooperate and who would otherwise be facing a decade or more in prison to instead be sentenced to time served."
Earlier, Manhattan Attorney Damian Williams disclosed that some of SBF's accomplices had flipped on him. "Anyone who participated in wrongdoing at FTX or Alameda Research and who has not yet come forward, I would strongly encourage you to come to see us before we come to you," he warned.
Other FTX execs may have turned SBF in
Other former FTX bigwigs may have also contributed to the fast turnaround of SBF's case.
This can be supported by the fact that an account on GitHub, which has the same name as a former FTX Engineering Director Nishad Singh, reportedly created codes to hide Alameda Research's mounting debt. GitHub is an internet hosting service for software development.
Analysts are wondering why Singh has not been charged with any crime since the FTX's downfall and the arrest of SBF in the Bahamas.
Meanwhile, Bahamian court records show that Ryan Salame, co-chief executive of FTX’s Bahamas operating entity, informed the country's securities commission on November 9 that FTX customer funds had been used to cover losses at Alameda Research, an allegation that triggered a referral to the Bahamas police and ultimately the appointment of liquidators.
FTX cryptocurrency firm's debts skyrocketed to at least $8 billion and SBF is now facing an eight-count indictment accusing him of defrauding FTX customers and using funds from sister-enterprise Alameda Research to illegally donate to Democratic politicians. There were also reports that he squandered much of the missing funds for personal purposes. Probes also found his parents and top execs bought opulent properties in the Bahamas, where FTX was headquartered. (Related: Sam Bankman-Fried’s parents purchased $121 million in “vacation home” properties in Bahamas using illicit funds from FTX crypto scam.)
SBF is now in a jail reportedly infested with rats and maggots. He was denied his request to be released on $250,000 cash bail with an ankle monitor to track his movements. One report suggested that SBF's relatives called the prison to see if vegan meals could be delivered to the facility. The exchange founder famously keeps a strict vegan diet.
His attorney said he is currently reviewing his legal options, but will fight extradition, the hearing for which is scheduled for February.
Bookmark CryptoCult.news for more updates on the collapsing cryptocurrency industry in the United States.
Watch the video below that showed SBF being denied bail as he was sent to overcrowded "hellhole" jail.
This video is from the Puretrauma357 channel on Brighteon.com.
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