The former CEO of Alameda Research, and a key player in the FTX downfall, Caroline Ellison, is reportedly seeking no jail time for her role in the exchange collapse. Indeed, her legal team is requesting leniency from the courts, according to a sentencing referendum that was issued Tuesday.
Ellison’s name rose to prominence due to its connection to FTX mastermind Sam Bankman-Fried. She was the CEO’s romantic partner and headed the firm’s sister platform. The duo were the two primary players in the fraud scheme that has Bankman-Fried currently serving a 25-year prison sentence.
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Caroline Ellison Seeking No Jail Time for FTX Collapse, Cites Cooperation
The crypto market has yet to see a controversy reach the levels of the FTX collapse. One of the most prominent exchanges in the industry has proven to be a fraud scheme perpetrated by a handful of individuals. Customers caught in the crosshairs saw $8 billion in their funds stolen from the platform.
That led CEO and founder Sam Bankman-Fried to see a massive sentence for his role in leading the white-collar crime. Yet, one key player is seeking leniency. Indeed, a crucial participant in the FTX scandal, Caroline Ellison, is seeking no jail time for her role in the platform’s collapse.
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Her lawyers have noted the Probation Department is seeking a three-year sentence of supervised release. They note that she has been cooperative with all government requests. Moreover, her testimony was crucial in gaining a conviction against Bankman-Fried.
“Caroline poses no risk of recidivism and presents no threat to public safety,” her legal team said in the filing. “It would therefore promote respect for the law to grant leniency in recognition of Caroline’s early disclosure of the crimes, her unmitigated acceptance of responsibility for them, and, most importantly- her extensive cooperation with the government.”
Both Alameda Research and FTX were founded by Bankman-Fried. The former was the market maker for the exchange. Additionally, it managed liquidity through the purchase and sale of cryptocurrencies.