Reports Suggest Caroline Ellison Is Working With Feds and Snitching on FTX Co-Founder Bankman-Fried

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Following the arrest of the former FTX boss Sam Bankman-Fried (SBF), spectators continue to wonder where ex-Alameda Research CEO Caroline Ellison is, and whether or not she turned on SBF. A few reports suggest Ellison is “likely working with feds” and it’s possibly the reason why Ellison was reportedly spotted at the Ground Support cafe in Soho.

Did Caroline Rat on SBF? No One’s Heard a Peep From the Mysterious Ex-Alameda Executive Since FTX Collapsed

A great deal of crypto supporters and the media have been wondering where Caroline Ellison, the former Alameda Research CEO, is currently located. After FTX filed for Chapter 11 bankruptcy protection, Sam Bankman-Fried (SBF), galavanted on a media tour with the likes of the New York Times’ Dealbook event and his appearance on Good Morning America. Then over a month after FTX collapsed, SBF was arrested in The Bahamas and indicted by a federal grand jury in Manhattan, charged with fraud by the U.S. Securities and Exchange Commission (SEC), and sued by the U.S. Commodity Futures Trading Commission (CFTC).

Ex-Alameda Research CEO Caroline Ellison has not said a word since FTX collapsed. Many believe Ellison may have snitched on FTX co-founder Sam Bankman-Fried. Ellison and Bankman-Fried were reportedly romantically involved.

Meanwhile, there hasn’t been a peep from Ellison. On Wednesday the public was made aware that FTX co-CEO Ryan Salame allegedly turned on SBF on Nov. 9, two days before the FTX bankruptcy filing. Reportedly, Salame told Bahamian authorities that SBF sent customer funds to the firm Alameda Research. The only thing that the public knows about Ellison is that she allegedly is now represented by the Former SEC Enforcement Division Chief Stephanie Avakian, and the legal team from Wilmerhale. Since SBF’s arrest, a few reports suggest Ellison has snitched on SBF as well.

For instance, the New York Post authors Ben Feuerherd and Bruce Golding published an article on Dec. 14 that says: “Caroline Ellison likely working with feds against Sam Bankman-Fried.” The New York Post details that experts say the “hellhole Bahamas prison” may make SBF drop his extradition fight. The report details the jail SBF resides in is filthy and “maggot-infested” and allegedly SBF’s family has been trying to get him vegan foods. In regard to Ellison, the Post spoke with former SEC attorney Howard Fischer, who said Ellison had a strong incentive to work with law enforcement.

“She would have among the greatest incentives to cooperate, as it was seeming likely that in his effort to exculpate himself, Bankman-Fried would try to finger her,” Fischer told the Post. “The speed of the indictment and the breadth of the charges” meant that “someone relatively senior is cooperating with the federal authorities in exchange for leniency for their own potential misconduct,” Fischer added. The former SEC lawyer continued:

It is possible Bankman-Fried’s publicity tour, in which he repeatedly disclaimed either knowledge of — or responsibility for — mishandling or theft of customer assets, spurred senior officers to fear that he would specifically blame them.

SDNY Prosecutor Urges Senior FTX and Alameda Execs to Come Forward — Ellison’s Neighbor Hasn’t Seen Caroline ‘Since Around Thanksgiving’

The New York Post is not the only publication assuming that Ellison may have ratted on SBF. writes that she “is widely believed to be working with American law enforcement in their case against Bankman-Fried.” The publication published two reports on the subject and discussed it at length in a post called “Did Caroline Ellison Snitch?” The author explains that Ellison could snitch to Gawker personally “girl to girls” by reaching out to the publication’s tip email.

Moreover, the Southern District of New York (SDNY) prosecutor’s office attorney Damian Williams mentioned that someone came forward in his statements to the press. “To anyone who participated in wrongdoing at FTX or Alameda Research and who has not yet come forward, I would strongly encourage you to come see us before we come to you,” Williams stressed. Williams also disclosed that he was “not at liberty to say who’s come in” so far.

The so-called mathlete Ellison who had zero issues talking about her “regular amphetamine use” on social media, has continued to remain silent since her last tweets. Reporters from the Post also visited Ellison’s parents’ home and the duo said they were “too busy” to chat with the press. Sara Fischer Ellison and her husband, Glenn Ellison, are both economists from the Massachusetts Institute of Technology (MIT). “I haven’t seen [Caroline] since around Thanksgiving,” a neighbor of the Ellisons told the New York Post. If Ellison is working with American law enforcement, it’s possible she was allowed to visit her parents during the holiday.

What do you think about the reports that suggest Caroline Ellison may have turned on SBF? Why do you think the ex-Alameda CEO has continued to remain silent? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about the disruptive protocols emerging today.

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