Bitcoin Price Manipulation
In a series of dramatic events related to Bitcoin’s price during the trial of Sam Bankman-Fried, the founder of FTX, shocking disclosures have surfaced from the testimonies of Caroline Ellison, his former girlfriend and former director of Alameda Research.
The key highlights of her statements revolve around allegations of a conspiracy to manipulate Bitcoin’s price by selling the cryptocurrency if it crossed the $20,000 mark.
In the course of the trial, Ellison unveiled conversations and damning documents that shed light on the possibility of market manipulation. In one instance, she revealed a chat note in which she wrote, “Keep selling BTC if it goes above $20,000,” hinting at a deliberate attempt to prevent Bitcoin’s price from rising. The prosecution emphasized the motives behind these actions and their impact on the market.
Ellison’s testimony also unveiled other related activities within the FTX ecosystem. She disclosed that, under Bankman-Fried’s direction, Alameda Research had borrowed an astounding $13 billion from FTX customers by September 2022. These borrowed funds are believed to have been used to repay loans and serve as collateral for various investments, raising questions about financial transparency and potential conflicts of interest.
Genesis Debt Crisis
The trial took an unexpected turn when Ellison highlighted conversations related to Genesis, a retail lending platform. According to Ellison’s testimony, Genesis faced the possibility of default and requested $500 million from FTX. She stated that Bankman-Fried instructed her to send money to Genesis, disregarding concerns about the transaction’s integrity.
All these revelations cast a shadow over the integrity of FTX and its founder, Sam Bankman-Fried, a prominent figure in the cryptocurrency industry. Allegations of Bitcoin price manipulation and suspicious financial activities have raised significant concerns about market fairness and investor trust.
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As the trial continues, the cryptocurrency community and market observers will closely monitor developments, anticipating further disclosures about Bitcoin price manipulation and the potential consequences for Bankman-Fried, Ellison, and the FTX cryptocurrency exchange. Bitcoin’s price has dropped below $27,000 and continues on a downward trajectory, failing to breach the resistance barrier at $28,700 on October 2. The cryptocurrency has fallen 2.7% in the past 24 hours.
