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The former girlfriend of disgraced FTX founder Sam Bankman-Fried is seeking no prison time at her sentencing for her part in the cryptocurrency exchange’s downfall. Caroline Ellison, who was a top executive at FTX as well as Alameda Research’s former CEO, pleaded guilty to seven felony counts over her role in the theft of $8 billion from customers.
In a court filing on September 10, Ellison’s legal team submitted letters from friends, colleagues, and family members calling for leniency. The attorneys cited her immediate and extensive cooperation with U.S. authorities when FTX and related companies collapsed in November 2022. They also recommended the 29-year-old be sentenced to time served with three years’ supervised release at her September 24 hearing.
Addressed to U.S. District Judge Lewis Kaplan in Manhattan, the lawyers stated: “From her first meeting with prosecutors, Caroline unflinchingly acknowledged her own wrongdoing.
“She time and again proved herself an enormously credible and important cooperating witness.
“She regrets her role deeply and will carry shame and remorse to her grave.”
What happened to Caroline Ellison?
Ellison had testified during the trial that she had revealed substantial fraud to employees even before FTX declared bankruptcy in November 2022.
She detailed how funds from FTX investors were misused to offset billions in losses Bankman-Fried incurred through investments or were spent on charitable donations, political contributions, and extravagant purchases supporting his luxurious lifestyle.
By early December 2022, she was fully cooperating with federal prosecutors, providing details about Bankman-Fried’s activities that directly contributed to several charges filed against him in the subsequent weeks, her lawyers stated.
They added: “Over time, Caroline’s moral compass warped.
“At Mr. Bankman-Fried’s direction, she took actions that she knew to be wrong, helping him steal billions. She lived in dread, knowing that a disastrous collapse was likely, but fearing that disentangling herself would only hasten that collapse.
“When FTX finally collapsed, Caroline felt intense sadness for all the people they had betrayed, but also tremendous relief, because she did not have to go on lying and stealing for Mr. Bankman-Fried.”
In March, Bankman-Fried was sentenced to 25 years in prison for fraud. He is appealing the verdict and sentence.
Earlier this month, ReadWrite reported that the United States Securities and Exchange Commission said it may challenge the repayment plan of the defunct exchange.
Featured image: Ideogram
