Attorneys push for no prison time for Caroline Ellison in FTX fraud case
Caroline Ellison’s attorneys are asking for time served and supervised release, citing her cooperation in the FTX case.
Former co-CEO of Alameda Research Caroline Ellison is pushing for a sentence of time served and supervised release rather than prison time as she approaches her sentencing due on Sept. 24. In a court filing on Sept. 10, Ellison’s attorneys highlighted her cooperation with authorities and the Probation Department’s recommendation for no prison time.
Ellison, who pleaded guilty to fraud linked to FTX‘s multi-billion downfall and testified against the exchange’s mastermind Sam Bankman-Fried last November, has been instrumental in the investigation and legal proceedings that followed.
Her cooperation was pivotal in Bankman-Fried’s conviction on seven counts of fraud and conspiracy, which led to his 25-year prison sentence. In their filing, Ellison’s lawyers emphasized that she has shown “extraordinary cooperation with the government” and that a sentence of time served with three years of supervised release would be appropriate.
Ellison’s attorneys pointed out that the former head of Alameda Research “poses no risk of recidivism and presents no threat to public safety,” adding that it would “promote respect for the law to grant leniency in recognition of Caroline’s early disclosure of the crimes, her unmitigated acceptance of responsibility for them, and — most importantly — her extensive cooperation with the government.”
The document included testimonials from John J. Ray III, CEO of the FTX bankruptcy estate, and Robert J. Cleary, the court-appointed examiner. Both commended Ellison for her valuable assistance in recovering assets and providing credible information.
FTX collapsed in November 2022 amid allegations of embezzlement and misappropriation of billions of dollars in customer funds involving its owners and affiliated hedge fund Alameda Research. Sam Bankman-Fried, the founder of the exchange, was sentenced to 25 years in prison and ordered to reimburse $11 billion.
