Caroline Ellison, a former top executive in the collapsed cryptocurrency empire of FTX founder Sam Bankman-Fried, is requesting no prison time at her upcoming sentencing. This request was made by her lawyers in a filing at Manhattan federal court ahead of the scheduled Sept. 24 sentencing.
Ellison's lawyers highlighted her cooperation with U.S. authorities following the collapse of FTX and related companies in November 2022. They emphasized that the court's Probation Department recommended no prison time for her.
Ellison, 29, pleaded guilty nearly two years ago and testified against Bankman-Fried at his trial last November, which resulted in his 25-year prison sentence. Her cooperation was instrumental in helping prosecutors build their case against Bankman-Fried.
According to her lawyers, Ellison took responsibility for her actions and expressed deep regret for her role in the crimes committed. They detailed her on-and-off romantic relationship with Bankman-Fried, which influenced her involvement in criminal activities at his direction.
Ellison disclosed a massive fraud to employees before FTX filed for bankruptcy, revealing that investor funds were misused to cover losses and extravagant expenses of Bankman-Fried. Following the collapse of FTX, she began cooperating with federal prosecutors, providing crucial information that led to charges against Bankman-Fried.
Despite the challenges she has faced, including reputational harm and being rendered unemployable, Ellison has engaged in charity work, writing, and academic projects. Her lawyers mentioned that she is finalizing settlements with the government and FTX debtors, which may result in her forfeiting earnings from her time at Alameda Research.
Prosecutors are expected to present their arguments before Ellison's sentencing, where her fate will be determined by the court.
