Attorneys Argue Caroline Ellison Deserves Leniency After FTX Collapse

Former Alameda Research CEO Caroline Ellison should be sentenced to time served and supervised release, according to her attorneys. Despite her involvement in the FTX collapse, her cooperation with prosecutors and the bankruptcy estate has been highlighted as a reason for leniency.

Key Takeaways

• Caroline Ellison's attorneys argue for time served and supervised release.

• Ellison cooperated extensively with prosecutors and the FTX bankruptcy estate.

• A presentence report recommended no prison term or fine.

• Ellison testified against FTX founder Sam Bankman-Fried.

• Sentencing is scheduled for September 24, 2024.

Background and Cooperation

Caroline Ellison, former CEO of Alameda Research, played a significant role in the operations of FTX and its subsequent collapse. However, her attorneys argue that her extensive cooperation with prosecutors, the FTX bankruptcy estate, and creditors should be taken into account. Ellison testified against FTX founder Sam Bankman-Fried, who was convicted on seven counts of fraud and conspiracy.

Presentence Report Recommendations

A presentence report recommended that Ellison should not face any prison term or fine. The report highlighted her "extraordinary cooperation with the government" and included character testimonials. The Probation Department suggested three years of supervised release.

Personal Background and Challenges

Ellison's attorneys provided a detailed account of her personal background, including her childhood, college years, and early career. She met Bankman-Fried at Jane Street and later joined Alameda Research. During her time at Alameda, she began taking Adderall and had an on-again, off-again relationship with Bankman-Fried. The document described how she became isolated from friends after moving to Hong Kong just before COVID lockdowns.

Support and Testimonials

The sentencing submission included diary entries, statements about her cooperation with the FTX bankruptcy estate, and letters from former colleagues, friends, and family. Some names were redacted to protect individuals from harassment or doxing. John J. Ray III, CEO of the FTX bankruptcy estate, described Ellison's assistance as "valuable" in helping his team take over the exchange. Attorneys involved in class action lawsuits against FTX's former executives also acknowledged her valuable assistance.

Sentencing and Future Implications

Ellison is scheduled to be sentenced on September 24, 2024, in the same courthouse where Bankman-Fried was tried. Fellow FTX executives Nishad Singh and Gary Wang will also be sentenced later this year, in October and November.

Conclusion

Ellison's attorneys argue that she poses no risk of recidivism and presents no threat to public safety. They believe that granting leniency would promote respect for the law, given her early disclosure of the crimes, acceptance of responsibility, and extensive cooperation with the government.

Sources

• Caroline Ellison Shouldn't Go to Jail After FTX Collapse, Attorneys Say, CoinDesk.

• Caroline Ellison no debería ir a la cárcel tras el derrumbe de FTX, según sus abogados, CoinDesk.

• Caroline Ellison T deveria ir para a cadeia após o colapso da FTX, dizem advogados, CoinDesk.

• Caroline Ellison T dovrebbe andare in prigione dopo il crollo di FTX, affermano gli avvocati, CoinDesk.

• Адвокаты говорят, что Кэролайн Эллисон T должна отправляться в тюрьму после краха FTX, CoinDesk.