More Lenient Sentence for Caroline Ellison: Lawyers Plead for Clemency

Caroline Ellison, the former CEO of Alameda Research, hopes for a lighter sentence in the case concerning the bankruptcy of the cryptocurrency exchange FTX due to her extensive cooperation with authorities. Ellison's legal team argues that her collaboration with the government warrants a lenient sentencing. A new sentencing memorandum states that Ellison poses no risk of relapse and is not a threat to public safety. Her early disclosure of the offenses, complete acceptance of responsibility, and extensive cooperation with authorities deserve recognition through a lenient sentence. Before its spectacular collapse in 2022, FTX was among the world's largest cryptocurrency exchanges with an estimated value of $32 billion. The founder, Sam Bankman-Fried, was sentenced to 25 years in prison for fraud and money laundering and ordered to pay $11 billion. In August of this year, FTX was also instructed by a U.S. court to repay $12.7 billion to the victims who lost their money through the cryptocurrency exchange. The Commodity Futures Trading Commission (CFTC) described the crimes as a "massive fraudulent scheme" orchestrated by Bankman-Fried and his now-bankrupt FTX group. During the trial, Bankman-Fried's defense team tried to place the blame on Ellison; however, the Alameda Research CEO presented numerous revelations that incriminated Bankman-Fried and FTX. These included Excel spreadsheets demonstrating Bankman-Fried's awareness of financial risks and attempts to recover $1 billion from the Chinese government. John J. Ray III, the CEO of FTX during the bankruptcy, emphasized Ellison's valuable support and cooperation, which contributed to the recovery of hundreds of millions of dollars for the creditors. The official sentencing for Ellison is scheduled for September 24.