Sam Bankman-Fried Allegedly Seeking Investment from the Crown Prince of Saudi Arabia

Crown Prince of Saudi Arabia, Mohammed bin Salman, or MBS. (photo: twitter @HRHMBNSALMAAN)

JAKARTA - Former CEO of Alameda Research, Caroline Ellison, claimed in court that Sam "SBF" Bankman-Fried tried to raise equity for FTX by considering investment from the Crown Prince of Saudi Arabia, Mohammed bin Salman, or MBS.

While attending a hearing at the SBF court on October 11, Ellison said that she had discussed ways to protect Alameda's investments with Bankman-Fried in 2022. According to the former Alameda CEO, Bankman-Fried said that MBS was a potential investor in the crypto exchange before it collapsed in November 2022.

The potential investment by MBS was among the notes mentioned in one of Ellison's online journals titled "Things That Make Sam Feel Anxious," which prosecutors said in August they could present at trial. According to her testimony, the list included “collecting funds from MBS” as well as turning regulators against crypto exchange Binance.

MBS, who has a net worth in the billions of dollars, once invested in blockchain gaming through Saudi Arabia's sovereign wealth fund. However, he was also reportedly linked to the 2018 murder of Washington Post journalist Jamal Khashoggi at the Saudi consulate in Istanbul.

A report from Puck in April said that Bankman-Fried met with MBS in Saudi Arabia about two weeks before FTX filed for bankruptcy. Although SBF reportedly wants to raise 1 billion US dollars (IDR 15.6 trillion) for FTX, Saudi investors are willing to contribute around 250 million US dollars (IDR 3.9 trillion) - the same amount that a judge required as collateral after the former CEO was arrested in America Union.

Ellison will continue her testimony through approximately October 11 and into October 12, when SBF's attorneys will undergo cross-examination. As of this writing, she had admitted to acts of fraud during her tenure as head of Alameda and largely blamed Bankman-Fried for the improper use of customer funds. This included directing her to provide misleading financial information to Genesis lenders.

Prosecutors in Bankman-Fried's criminal trial said they plan to end their case on Oct. 26 or 27, after which SBF attorneys will begin calling witnesses. Bankman-Fried has pleaded not guilty to seven criminal charges related to fraud at FTX, as well as five other charges he will face in his March 2024 trial.