Caroline Ellison files a sentencing memo, asking a judge to spare her from prison

Caroline Ellison, former CEO of Alameda Research and a key figure in the fraud case against Sam Bankman-Fried, is asking a judge to spare her from prison, highlighting her extensive cooperation with prosecutors in what has been called one of the largest financial crime investigations in U.S. history.

Ellison’s lawyers filed a sentencing memo on September 10, 2024, detailing her pivotal role in helping uncover crimes related to the collapse of FTX, the cryptocurrency exchange once helmed by Bankman-Fried.
 

Ellison, 29, who has pleaded guilty to her involvement in the fraud at FTX and Alameda, will be sentenced on September 24.

She was portrayed in the memo as having been manipulated by Bankman-Fried, who was both her boss and on-again-off-again boyfriend, to commit financial crimes.

“She regrets her role deeply and will carry shame and remorse to her grave,” her legal team stated in the filing.

Ellison was a star witness in Bankman-Fried's trial, where she testified about the use of FTX customer funds to cover Alameda’s losses, ultimately helping prosecutors secure Bankman-Fried’s conviction and a 25-year prison sentence.

Her lawyers argue that her cooperation was instrumental in revealing crimes unknown to investigators, including a bribery scheme involving Chinese officials.

Despite her guilty plea, the U.S. Probation Department has recommended that Ellison serve no prison time, instead proposing three years of supervised release.

The final sentencing decision rests with Judge Lewis A. Kaplan. Ellison’s legal team emphasized her remorse and painted her as a victim of Bankman-Fried's manipulation, while also distancing her from the extravagance often associated with the cryptocurrency industry.

The sentencing memo also shed light on Ellison’s personal struggles, particularly her deteriorating relationship with Bankman-Fried.

She described working under intense pressure, driven by a desire to meet Bankman-Fried's expectations. Letters from friends and personal diary entries included in the court filing further illustrate her emotional distress and isolation during her tenure at Alameda Research.

Ellison’s testimony and cooperation have been crucial in the government's case against FTX, making her one of four former Bankman-Fried associates to plead guilty following the exchange’s collapse in 2022.

In summary, Caroline Ellison, the former CEO of Alameda Research, is seeking leniency in her sentencing for her role in the FTX collapse. Her legal team has requested no prison time, citing her extensive cooperation with authorities and her testimony against Sam Bankman-Fried.

Ellison’s sentencing is scheduled for September 24, 2024.