Caroline Ellison’s lawyers are asking for her to be released from prison and given supervised release, citing her cooperation in the FTX case.
Caroline Ellison, the former CEO of Alameda Research, is seeking time served and probation instead of prison as her sentencing date approaches on Sept. 24. Submit a request to the court On September 10, Ellison’s attorneys highlighted her cooperation with authorities and the probation department’s recommendation that she not be jailed.
Ellison, who pleaded guilty to fraud linked to the multibillion-dollar collapse of the FTX exchange and testified against exchange mastermind Sam Bankman-Fried last November, was instrumental in the investigation and subsequent legal proceedings.
Her cooperation was pivotal in Bankman-Fried’s conviction on seven counts of fraud and conspiracy, which resulted in a 25-year prison sentence. In their filing, Ellison’s lawyers argued that she had shown “extraordinary cooperation with the government” and that a three-year sentence with supervised release would be appropriate.
Ellison’s lawyers noted that the former Alameda Research president “poses no risk of recidivism and poses no threat to public safety,” adding that “granting leniency in recognition of Caroline’s early disclosure of the crimes, her full acceptance of responsibility for them, and most importantly – her extensive cooperation with the government would enhance respect for the law.”
The document included testimonies from John J. Ray III, CEO of the bankruptcy firm FTX, and Robert J. Cleary, the court-appointed investigator. Both praised Ellison for her valuable assistance in recovering assets and providing reliable information.
FTX collapsed in November 2022 amid allegations that billions of dollars in client funds were embezzled and exploited by its owners and its hedge fund Alameda Research. Sam Bankman-Fried, the exchange’s founder, was sentenced to 25 years in prison and ordered to repay $11 billion.