NEW YORK – The founder of bankrupt crypto exchange FTX, Sam Bankman-Fried, is currently facing his ex-girlfriend Caroline Ellison in court. Ellison is testifying against the former crypto billionaire, accusing him of stealing billions from customers. Bankman-Fried, who was once the head of Alameda Research, denies all the charges.

Ellison, who pleaded guilty last December, admitted her wrongdoing, stating, “I knew that it was wrong.” She took the stand on Tuesday and revealed that Alameda took approximately $14 billion from FTX customers for investments and to repay lenders. However, she also mentioned that Alameda was able to return some of the money back to the exchange.

FTX, which was once a prominent platform for crypto investors, filed for bankruptcy in November, reporting more than $8 billion missing. Prosecutors allege that Bankman-Fried stole customer funds through Alameda, using the money for personal purposes such as buying property, making political donations, and funding risky crypto bets.

According to Ellison, when Alameda lenders demanded repayment, Bankman-Fried instructed her to tap into FTX customer funds to settle the debts. Ellison has admitted to multiple charges, including lying about the relationship between Alameda and FTX, with hopes of receiving a reduced sentence.

Bankman-Fried’s defense argues that Alameda’s business practices were reasonable considering their role in facilitating trading on the platform. They claim that the firm’s problems were exacerbated by Ellison’s failure to heed Bankman-Fried’s warning about potential crypto market turmoil.

Ellison’s testimony may be influenced by her turbulent relationship with Bankman-Fried, as filings from prosecutors and her own writings suggest that their on-off romantic involvement was a source of stress for both parties. It is worth noting that Bankman-Fried’s bail was revoked for allegedly intimidating a witness, forcing him to await trial in jail.

Caroline Ellison, who had previously worked with Bankman-Fried at Jane Street, comes from an academic background and shares his ambition to use money for good. She is just one of several members of Bankman-Fried’s inner circle who are testifying against him.

The trial continues as both sides present their arguments and evidence. Bankman-Fried faces serious allegations of embezzlement and malpractice, while the prosecution seeks to prove his guilt beyond a reasonable doubt.