Ellison’s Attorneys Request Leniency Before September Sentencing

In a recent filing submitted by her attorneys on Tuesday, Caroline Ellison, the former CEO of Alameda Research, is seeking a sentence of time served along with supervised release.

This request precedes her upcoming sentencing, scheduled for September 24, 2024, related to her role in the downfall of the cryptocurrency exchange FTX.

Significant Cooperation

In the Tuesday filing, her legal representatives highlighted Ellison’s “significant cooperation with the government,” which they argue warrants a more lenient sentence. They also cited a presentence report from the Probation Department recommending three years of supervised release without any fines.

“[Ellison] poses no risk of reoffending and does not represent a threat to public safety. Hence, it would encourage respect for the law to grant leniency in acknowledgement of [Ellison’s] prompt disclosure of the offenses, her complete acceptance of responsibility, and – most crucially – her extensive assistance to the government,” the filing stated.

John J. Ray III, the CEO managing the FTX bankruptcy proceedings, noted her ‘valuable’ contribution in aiding his team as they worked to regain control of the struggling exchange.

Ray’s submission indicated that the FTX bankruptcy estate was close to settling with Ellison, under an agreement in which she would forfeit nearly all of her remaining resources and continue to aid in the restructuring efforts of the exchange and its related entities.

Lawyers leading class action lawsuits against previous FTX executives have also acknowledged her crucial role in helping recover funds for the exchange’s creditors. Robert Cleary, a court-appointed examiner for the case, also mentioned her valuable assistance throughout the proceedings.

Her legal representatives backed their request with diary journals, testimonies regarding her cooperation with FTX’s bankruptcy estate, and character endorsements from peers, friends, and family.

While certain names in these testimonials have been redacted to mitigate risks of harassment or doxing, Inner City Press has requested a hearing to discuss the potential unsealing of these names. Nonetheless, the legal team asserts that redaction is essential to safeguard the writers from possible harm.

Sentencing Date for Caroline

Ellison, a close associate of FTX founder Sam Bankman-Fried, testified last year that he directed her to engage in fraudulent activities and hide FTX and Alameda’s financial issues from investors.

Her testimony played a significant role in Bankman-Fried’s conviction on seven charges of fraud and conspiracy. Following FTX’s collapse in November 2022, she entered a guilty plea and collaborated with prosecutors.

Her sentencing, taking place on September 24 at 3:00 p.m. EDT, will mark her as the third key individual in the FTX scandal to receive a sentence, following Ryan Salame and Bankman-Fried, who faced sentences of 7.5 and 25 years, respectively.