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A “diary” belonging to Caroline Ellison, the ex-Alameda Research CEO and former girlfriend of Sam Bankman-Fried, has reportedly emerged as a vital piece of evidence in the disgraced FTX founder’s upcoming fraud trial.
The personal notebook is part of a massive trove of documents and other insider materials that prosecutors have compiled as they build their case against Bankman-Fried, who faces trial in October, the New York Times reported, citing a person with knowledge of the matter.
Aside from Ellison’s notebook, which is filled with “handwritten observations,” prosecutors also possess “electronic documents” that she wrote, the report said.
Occasionally, Ellison reportedly “expressed personal and professional resentment” toward her former lover in the documents.
Ellison is set to testify against Bankman-Fried after pleading guilty to fraud charges late last year.
“The biggest risk with a cooperator is the defense will be able to say here she is cooperating to save herself from a long prison term,” former federal prosecutor Moira Penza told the outlet. “But modern juries are not likely to take at face value they are testifying because of a vendetta or a failed romance.”
Before she agreed to testify, she faced up to 110 years in prison – with prosecutors alleging that she, Bankman-Fried and other close associates secretly used FTX customer founds to prop up risky bets at Alameda, a sister cryptocurrency hedge fund.
Ellison’s relationship with Bankman-Fried drew intense scrutiny during FTX’s collapse into bankruptcy last November.
A bombshell report by CoinDesk at the time said Bankman-Fried and Ellison were part of a “cabal of roommates” that ran the massive cryptocurrency empire from a “luxury penthouse” in the Bahamas.
In December, Ellison told a federal court that she was “truly sorry” for her actions.
At least two other former top FTX executives, Gary Wang and Nishad Singh, are also cooperating against Bankman-Fried.
Ellison’s personal writing has already garnered public attention.
Last year, The Post and other outlets reported that she had tweeted about her “regular amphetamine use” in 2021.
Internet sleuths also uncovered what appeared to be Ellison’s personal Tumblr blog, which included graphic references to polyamory.
The account was later deleted.
The stockpile of evidence obtained by prosecutors includes “more than six million pages of emails, Slack messages and other digital records, according to the New York Times.
The report said it is one of the largest troves of documents ever secured in connection to a white-collar securities fraud case.
An attorney for Ellison did not immediately return The Post’s requests for comment.
Representatives for Bankman-Fried declined to comment.
In May, Bankman-Fried’s legal team asked a Manhattan federal court to throw out 10 of the 13 charges against him, arguing that the feds had engaged in a “rush to judgement.”
“Rather than wait for traditional civil and regulatory processes following their ordinary course to address the situation, the Government jumped in with both feet, improperly seeking to turn these civil and regulatory issues into federal crimes,” Bankman-Fried’s lawyers wrote.
Source by [New York Post]