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The golden couple of geekdom whose multibillion-dollar FTX cryptocurrency universe is imploding are poised to rat each other out, sources say.
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Sam Bankman-Fried and Caroline Ellison — who lorded over an empire of pills, orgies and polyamory — are now scrambling for their lives.
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Ellison, the Harry Potter and Chinese harem enthusiast, fled the U.S. three weeks ago for Hong Kong or Dubai and has only recently returned to New York.
SBF was arrested Monday night in the Bahamas for his alleged role in the FTX meltdown that has ensnared celebrities like Tom Brady, Gisele Bundchen and Mr. Wonderful, Kevin O’Leary.
The shaggy-haired SBF has suggested that Ellison — his one-time girlfriend — could be to blame for the $8 billion is missing customer money. For her part, Ellison has hired law firm Wilmer Hale.
And there are indications, the New York Post reports, that she’s looking to make a deal. Her law firm has a top-flight reputation and is keenly attended to cutting deals.
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“The scoop in white-collar defence circles is that Ellison is weighing whether to turn on (Bankman-Fried) and looking for a plea,” one lawyer told the Post. “This firm is known to specialize in these deals.”
It’s believed the FTX disaster is the biggest fraud in the crypto industry’s short, dirty history.
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The crypto exchange filed for bankruptcy in November as billions in customer accounts went missing.
Both are now facing civil fraud charges from the Securities and Exchange Commission. The former couple could potentially face years in prison if charged and convicted.
Prosecutors with the Manhattan federal prosecutor’s officer are now attempting to ascertain whether FTX’s customer accounts were looted and used to make up for losses at Ellison’s affiliated firm, Alameda Research.
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Alameda is reportedly 90% owned by SBF but Ellison was its CEO.
Bankman-Fried and Ellison lived among a “cabal of roommates” at a luxury penthouse in the Bahamas with a slew of roommates.
Ellison even once posted about her interest in BDSM sex and drug use, and saying that a “Chinese harem” was her preferred relationship status.
While Ellison is no longer issuing missives about her penchant for BDSM and keeping it on the down low, her former boyfriend has been reaching out to a number of media outlets.
The crypto kid is telling reporters who will listen that, gee whiz, he doesn’t know what happened to the $8 billion. Bankman-Fried concedes he should have been more watchful.
bhunter@postmedia.com
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