Caroline Ellison, a former high-ranking executive in the cryptocurrency empire of FTX founder Sam Bankman-Fried and his ex-girlfriend, is requesting to avoid imprisonment during her upcoming sentencing. This plea was made by Ellison’s lawyers in a filing at Manhattan federal court before her sentencing on Sept. 24. The attorneys highlighted her swift and extensive cooperation with U.S. authorities when FTX and its affiliated companies collapsed in November 2022, noting that the Probation Department recommended no prison time for her.
Ellison, aged 29, had pleaded guilty almost two years ago and provided crucial testimony against Bankman-Fried during his trial in November, which resulted in his 25-year prison sentence. Without her cooperation, Ellison could have potentially faced many years in prison. Her lawyers emphasized that she takes full responsibility for her actions, expressing deep regret and accepting the shame and remorse for her involvement.
In the filing, Ellison’s lawyers delved into the complicated on-and-off romantic relationship between Ellison and Bankman-Fried that spanned several years. They mentioned the impact of their relationship and her appointment as CEO at Alameda Research, FTX’s hedge fund affiliate, in her involvement in criminal activities directed by Bankman-Fried. Ellison testified during the trial that she disclosed significant fraud to employees even before FTX declared bankruptcy.
Following the collapse of FTX, Ellison began cooperating extensively with federal prosecutors, providing valuable information on Bankman-Fried’s actions that led to charges being brought against him. Despite initial moral misgivings, Ellison followed Bankman-Fried’s directives, engaging in wrongdoing that culminated in the theft of significant sums. The lawyers highlighted Ellison’s relief post-FTX collapse, sparing her from further participation in illegal activities for Bankman-Fried.
Post-testimony at Bankman-Fried’s trial, Ellison continued to face challenges, including reputational harm hindering immediate employment opportunities. The lawyers mentioned that Ellison, motivated neither by greed nor personal gain, is finalizing settlements with the government, FTX debtors, and in the FTX-related multidistrict litigation, likely resulting in forfeiture of earnings from her time at Alameda. Prosecutors were to present their arguments before the sentencing.
