Caroline Ellison Shouldn’t Go to Jail After FTX Collapse, Attorneys Say

Former Alameda Analysis CEO Caroline Ellison needs to be sentenced to jail and at most supervised launch, her attorneys mentioned in a submitting late Tuesday.

Ellison, regardless of her position in supporting FTX and Alameda, cooperated with prosecutors, FTX’s chapter property and collectors, the submitting mentioned.

A presentation report additionally beneficial no jail time or high quality, the submitting mentioned.

Former Alameda Analysis CEO Caroline Ellison needs to be sentenced to jail and supervised launch for her position within the FTX operation and its subsequent collapse, her attorneys mentioned in a submitting late Tuesday.

Ellison, considered one of FTX founder Sam Bankman-Fried’s high lieutenants, testified at his trial final 12 months, the place he was convicted on seven counts of fraud and conspiracy. Ellison had beforehand pleaded responsible to fraud associated to FTX’s operations shortly after the alternate filed for chapter within the fall of 2022. In Tuesday night time’s submitting, her attorneys famous that the probation division filed a presentence report recommending three years of supervised launch, citing her “extraordinary cooperation with the federal government” and the character testimonials included within the submission. The presentation report additionally beneficial that Ellison not be fined.

“[Ellison] doesn’t pose a threat of recidivism and doesn’t pose a menace to public security. It might subsequently promote respect for the regulation to grant leniency in recognition of [Ellison’s] early disclosure of the crimes, her continued acceptance of duty for them, and – most significantly – her in depth cooperation with the federal government,” the submitting mentioned.

The doc outlined Ellison’s childhood, school and early profession, together with her assembly Bankman-Fried on Jane Road and ultimately becoming a member of Alameda Analysis, Bankman-Fried’s first firm.

Ellison started taking Adderall and had an on-and-off relationship with Bankman-Fried throughout her time at Alameda (which was described within the doc as Bankman-Fried repeatedly ghosting her), the attorneys mentioned. As a part of her position at Alameda, she grew to become remoted from associates when she moved to Hong Kong shortly earlier than COVID lockdowns blocked journey between there and the US.

The judgment submitting was accompanied by diary entries, statements about her cooperation with FTX’s chapter property and letters from former colleagues, family and friends. A few of these names have been redacted, though Inside Metropolis Press has requested the court docket to no less than grant a listening to to argue for these names to be unredacted. Ellison’s attorneys mentioned in an preliminary submitting that the individuals who wrote the letters are prone to harassment or insults, and no less than one letter mentioned it was written by one other former Alameda Analysis worker.

John J. Ray III, the CEO of the FTX chapter property, wrote that Ellison’s help was “worthwhile” in serving to his staff take over the alternate when it fell aside, and that the property is near a settlement with Ellison acknowledged, “changing…considerably all of its remaining property” and persevering with to help the chapter staff within the restructuring of FTX and its affiliated entities.

Equally, attorneys who filed class motion lawsuits towards FTX’s former executives mentioned she “offered worthwhile help” to assist them get well cash for FTX’s collectors. Robert Cleary, the court-appointed investigator, additionally wrote a (temporary) message saying Ellison was useful.

Ellison’s diary entries – no less than a choose few pages – additionally element her thought course of throughout her time at Alameda, describing her temper, how her work and her relationship with Bankman-Fried affected her, and her ideas on how she lived her life might enhance (taking a time off from work, going outdoors, holding in contact with associates, and decreasing her dose of Adderall, amongst different attainable treatments).

Ellison is anticipated to be sentenced on September 24, 2024 in the identical courthouse the place Bankman-Fried was tried. Fellow FTX administrators Nishad Singh and Gary Wang may even be sentenced this 12 months, in October and November.

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