Early lessons for the crypto industry from the big trial underway in New York right now.

I'm David Brankhacho in New York, the fraud trial of Sam Bankman-Free,

co-founder of Bankrupt cryptocurrency exchange FTX and its interwoven trading firm Alameda Research

continues here in New York. Bankman-Free does facing seven counts of fraud and conspiracy.

If convicted, the penalty could effectively be life in prison.

Prosecutors are trying to build the case that Bankman-Free misused billions of dollars in customer

accounts to prop up his businesses. This week, the jury heard from the government star witness,

Alameda's CEO, Caroline Ellison, New York Times Technology and Crypto Industry reporter David

Yafi Bellany was in the courtroom. He joins us this morning. Welcome.

Thanks for having me. So two days of testimony, what did we learn from Caroline Ellison,

who I should mention was also an on and off romantic partner of Bankman-Free.

What do we learn about how Alameda, this trading firm, worked with FTX?

This was the most hotly anticipated testimony of the trial for all the reasons that you laid out.

She was key executive in his orbit and she was also his ex-girlfriend and we've learned a ton

about the relationship between Alameda and FTX. Yesterday, she talked at length about how Sam

directed her to essentially create cloney balance sheets that she then circulated to companies

that were lending Alameda money and the balance sheets essentially concealed the fact that Alameda

was struggling a lot and that it was borrowing money from the FTX change from customers to kind of

prop up its business. Lie to Lenders. And is it even in dispute that customer money was used

to prop up Bankman-Free's enterprises?

He's essentially been arguing in public that this was a huge accounting screw up.

He wasn't aware of how much money was being borrowed from the exchange,

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