Former Alameda Research CEO Caroline Ellison Asks To Be Spared Prison Sentence For Role In FTX Collapse

Updated: 11 September 2024

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Attorneys for former Alameda Research CEO Caroline Ellison asked that she be spared a prison sentence for her role in the FTX collapse, citing her “extraordinary cooperation” in testifying against FTX founder Sam Bankman-Fried.

In a Sept. 10 court filing, they noted that the Probabtion Department had recommended three years of supervised release instead, and highlighted Ellison’s key role in securing Bankman-Fried’s conviction.

She faces up to 110 years in prison but is likely to receive a lighter sentence due to her assistance.

Bankman-Fried Instructed Ellison To Compile False Balance Sheets

Ellison provided the most damning testimony during Bankman-Friend’s trial, which subsequently led to his 25-year prison sentence.

Ellison described how Bankman-Fried instructed her to compile misleading balance sheets for investors. She also revealed how the FTX founder pursued risky investments knowing full well that it would lead to a draw down for investors.

Ellison “poses no risk of recidivism and presents no threat to public safety,” Ellison’s attorneys said in the filing. Her “early disclosure of the crimes, her unmitigated acceptance of responsibility for them,“ as well as the three days she testified as a government witness against Bankman-Fried were listed in the filing as reasons for the court to grant her leniency.

Caroline Ellison's lawyers want to redact parts of her sentencing submission because she "has been the focus of intense media scrutiny and Internet fascination" pic.twitter.com/d2d8Ip98oS

— Jacob Shamsian ⚖️ (@JayShams) September 10, 2024

Diary entries and statements showing Ellison’s cooperation with FTX’s bankruptcy estate were also a part of her sentencing submission, along with letters from former colleagues, friends and family.

Caroline Ellison Faces Up To 110 Years In Prison

Ellison pleaded guilty to seven counts of wire fraud, money laundering, commodities fraud and securities fraud in commingling of FTX and Alameda Research funds.

If given the maximum allowable sentence, Ellison could be sentenced to 110 years in prison, although legal experts say her cooperation and testimony make this unlikely.

Ellison is scheduled to appear in court for her sentencing on Sept. 24.

Former FTX engineering director Nishad Singh and the exchange’s co-founder Gary Wang will have their sentencing hearings on Oct. 30 and Nov. 20, respectively. Wang and Singh also pleaded guilty.