Caroline Ellison, the previous chief govt of Alameda Analysis and ex-girlfriend of disgraced crypto entrepreneur Sam Bankman-Fried (SBF), obtained a two-year jail sentence and was ordered to forfeit $11 billion for her position within the collapse of FTX.
The Sept. 24 courtroom ruling comes regardless of Ellison’s request for no jail time on the premise that her testimony performed an important half in securing SBF’s conviction, which resulted in a 25-year jail time period for a number of fraud-related offenses.
Request for no jail time
Ellison’s authorized crew sought to keep away from jail time by arguing for a sentence of time served, emphasizing her substantial cooperation with federal authorities following the collapse of FTX.
The legal professionals highlighted her voluntary return to the US from the Bahamas and her vital help in understanding the monetary mismanagement at each FTX and Alameda Analysis, which helped in asset restoration.
In a courtroom doc submitted on Sept. 10, John Ray, the CEO of FTX who oversees its chapter proceedings, acknowledged the importance of Ellison’s cooperation in recovering substantial property.
Ellison’s legal professionals additionally emphasised her beforehand clear document and offered character testimonials testifying to her integrity. They additional contended that SBF’s manipulative conduct skewed her ethical judgment, main her to partake in illegal actions whereas feeling trapped in an advanced private {and professional} dynamic with him.
Plea deal
Ellison accepted a plea deal in December 2022 after FTX filed for chapter. Prosecutors charged her with conspiracy and monetary fraud, and she or he testified for almost three days throughout SBF’s trial in November, revealing intensive particulars concerning the operations of each FTX and Alameda Analysis.
Prosecutors described her testimony because the “cornerstone” of the case, which considerably contributed to the jury’s responsible verdict in opposition to SBF on all seven counts.
Earlier than its dramatic collapse, FTX stood as one of many largest cryptocurrency exchanges globally, acknowledged for aggressive lobbying in Washington and distinguished promoting, together with a Tremendous Bowl spot. SBF and different executives face severe allegations of diverting buyer funds for private use, high-risk investments, and indulgent spending.
Ellison’s sentencing varieties a part of a broader collection of authorized actions in opposition to former FTX executives. In Could, a decide sentenced Ryan Salame to seven and a half years in jail, whereas fellow executives Nishad Singh and Gary Wang await sentencing within the coming months.