Former CEO of Alameda Research, Caroline Ellison, is striving to evade a prison sentence as she awaits her sentencing. The ex-executive’s legal team emphasizes her collaboration with prosecutors in shedding light on the FTX debacle, which triggered substantial losses in the cryptocurrency market. Ellison willingly returned from the Bahamas to assist authorities, showcasing her commitment to cooperation.
Alameda Research’s connection to FTX, overseen by Sam Bankman-Fried, led Ellison to aid regulators in unraveling the aftermath of FTX’s collapse. Her lawyers argue that she poses no danger of relapsing and does not pose a threat to public safety, advocating for leniency due to her swift disclosure of crimes, acknowledgement of responsibility, and extensive cooperation with the government.
Following FTX’s demise, legal actions were taken against executives of both FTX and Alameda Research, leading Ellison to reach a plea deal with prosecutors on fraud and conspiracy charges. In a related development, Ellison’s legal team requested anonymity for supporters’ letters during the sentencing proceedings.
As her September 24 sentencing approaches, Ellison’s attorneys contend that her impeccable track record warrants consideration. They align with the Probation Department’s recommendation for a sentence of time served along with three years of supervised release. FTX CEO John Ray hailed Ellison’s contributions as instrumental in asset recovery worth “hundreds of millions of dollars,” while the industry continues to reel from the fallout of the exchange’s collapse. Amidst significant losses, Thoma Bravo’s CEO, Orlando Bravo, has sworn off cryptocurrency following the turmoil.