Attorneys push for no prison time for Caroline Ellison in FTX fraud case

As a researcher with extensive experience in the field of financial crimes, I find myself intrigued by the case of Caroline Ellison. Her attorneys’ plea for time served and supervised release, based on her cooperation in the FTX case, is not an uncommon strategy in such situations. However, it’s the extent of her cooperation that sets her apart.


Caroline Ellison’s lawyers are requesting that she be granted time served and released under supervision, based on her cooperation during the FTX investigation.

Caroline Ellison, who used to share the CEO position at Alameda Research, is advocating for a sentence that includes time served and supervised release instead of imprisonment as her sentencing date on September 24 approaches. In a court filing made on September 10, Ellison’s legal team emphasized her cooperation with the authorities and the Probation Department’s suggestion of no prison time.

Ellison, who admitted guilt over fraud implicated in FTX’s massive collapse and testified against FTX’s key figure Sam Bankman-Fried in November, played a crucial role in the subsequent investigation and court proceedings.

Essential to Bankman-Fried’s trial and subsequent 25-year prison sentence for seven fraud and conspiracy charges, Ellison provided crucial cooperation to the authorities. In their submission, her attorneys highlighted her “exceptional assistance” to the government, suggesting a sentence of time already served with three years of supervised release would be fitting.

Ellison’s legal team emphasized that the ex-leader of Alameda Research “does not pose a risk of reoffending and does not endanger public security.” They further stated that showing leniency towards Caroline would be a way to honor the law, acknowledging her prompt disclosure of the crimes, her complete acceptance of responsibility for them, and – most significantly – her extensive assistance to 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.

In November 2022, FTX faced a collapse due to accusations of theft and misuse of billions of dollars belonging to customers, which were linked to its owners and Alameda Research, an associated hedge fund. Sam Bankman-Fried, the founder of the platform, was penalized with a 25-year prison sentence and mandated to return $11 billion.

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2024-09-11 12:36