Aug 16, 2023

A recent court filing reveals prosecutors plan on submitting personal notes from former Alameda CEO Caroline Ellison as evidence against FTX founder Sam Bankman-Fried ahead of his trial in October, which includes a list titled "Things Sam is Freaking Out About."

Video transcript

The upcoming Sam Beman Fried criminal trial. Prosecutors in that trial are now saying that they plan to use personal notes and diary entries written by Caroline Ellison. Of course, she's the former CEO of Alameda research as evidence against the disgraced FTX founder. In a filing, we learned that Ellison took notes at meetings about the financial health of Alameda and separately created a list titled Quote things Sam is freaking out about unquote that summarized Sp F's concerns Zach, throwing it off to you. This is going to be a trial just full of drama and tidbits that we probably couldn't have even have guessed that would have ended up there. You just, you can't make this stuff up, you know, in a, in an organization in which all of the messages disappeared through various chat apps. The one stuff that has not disappeared is the diary from former Alameda research. Co Ceo Caroline Ellison who is also reportedly SBFS one time girlfriend. This is just crazy that we're gonna have to watch this unfold through these logs of someone who's very much implicated in, in the practices that lost these entities. A whole lot of money. So Yeah, it's gonna be interesting to see what um you know, whether or not this is seen as a reliable narrator, whether or not this is uh something that, um you know, you can build a case around or whether this is someone who is similarly conflicted similarly in trouble with the things that uh led to the sudden and shocking demise of FTX and Alameda both. So, uh it's just the, the twists and turns. I'm just gonna sigh, sigh, it's just crazy. We're getting a new twist and turn. Big sigh, big sigh on this one. But uh yeah, also like maybe it sheds light on why SBF felt compelled to leak the diary uh ahead of time. Also, maybe think about that as well. But uh I don't know. Will, what do you think? Yeah, I want to go to one of the diary entries that's included in this decrypt article. They say that on November 9th, there's an all hands meeting that Ellison recorded in her diary talking about uh FTX and I I'll meet to having a liquidity shortfall. This was two days before both those entities filed for bankruptcy. And she said that this was like recorded in her diary uh that there was a bunch of money via open term loans and used to make various illiquid investments. Those loans went bad during 2022 and now the money was owed between Alameda and FTX. So she's sort of detailing like the huge problem here. And it goes on to say that these whole uh loans were filled by loans from users, right? So they basically admit the whole problem here that's alleged in the criminal trial going forward. And then she goes on to say later that whose fault is this? An employee asked her? And she said, uh Sam, I guess so, I think it kind of details like pretty clearly like what's going to happen here is like, they're gonna use this basically as a hammer. They have firsthand evidence from the co ceo of Alameda of why this happened and how it happened. I'm sure there's more juicy details in this and there's like the New York Times piece also about the diary that came out that will speak to this a lot like the weird relationship between Ellison and SPF. Uh But I think just in terms of like the core critical issue here for people who lost a lot of money. Um They are loading mo money out because they basically went to the bet farm on Bitcoins. And that's what happens when you don't protect the piggy bank, Wendy. I just think that it's interesting that the list is called things Sam is freaking out about. That's my favorite part. Um The reason why is, is I have a DH D and that would probably be something I would call a list is things we is freaking out about or things that are making me uncomfortable. So I think it's absolutely funny. Um, the whole thing is very sad though. I mean, of course, like fraud isn't good and people that do bad things, they're awful. But at the same time I just try to find light in every single situation and the fact that there's a list in court that's gonna be called things Sam is freaking out about. Um, and then they're gonna be using a diary. So, you know what guys don't be using diaries anymore. You can't use diaries anymore. You're not safe. This is not the 18 hundreds, not the 17 hundreds you have to use just you're just gonna have to use disappearing messages. That's not legal advice. I'm not your attorney and I'm not a legal expert, but you gotta get a lock on your diary and not, not write it in Google documents. You got to act like it's the 17 hundreds, just pen to paper, lock it up, put it under your bed, floorboard, floorboard in a 19 or 18 hundreds. Victorian mansion floorboard, please. One day someone will find it and they'll be for a treat. Uh for people who are wondering is this hearsay? The prosecution says that the notes were taken to memorialize information supplied to her and to provide a reference to help carry out her role in the conspiracy. I think that's kind of interesting and I want to get in uh Sam's lawyers response here. They are moving to exclude the evidence, the evidence gathered after July 1st, they say that the prosecutors failed to provide specific information in a timely manner. Uh substantially hindering Spfs ability to prepare for his defense. I find that kind of hilarious because he has hindered his ability to prepare for his defense by talking so much. And so he is in jail now and that's that deck. Wait, wait, wait, wait. It was, is the diary in Google Docs or is I was just picturing like a diary this whole time? Was it a digital diary or was it like a real diary? What he leaked to the New York Times? My understanding it was Google Docs. Ok. All right. OK. Cool. Well, I have to update my mental, my mental model for uh for what's been changing hands also. Like why is it called a diary? Not just like a journal? Like, is it, is this a gender thing? Is this like a schedule like diary in the sense of like schedule? Like I, why is it called the diary? Like the whole thing I think is, that's strange to me. I don't know Wendy. It's just strange to me. II, I just want to say I watched this really funny Tik Tok from this real attorney and she says I'm not your attorney, but the best thing you can do in life is just shut up, just shut up. And that was a tiktok. That was like, what our guy, our guy, our Bernie Madoff guy said the other day, she was like, you shut up and the moment you walk outside of your house, you're in public domain. So, and, and she also said, there's always people watching you.

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