Caroline Ellison Requests Time-Served Sentence for Cooperation in Sam Bankman-Fried Case
On Tuesday, September 10, 2024, former Alameda Research CEO Caroline Ellison filed a sentencing memo requesting that a judge grant her time-served in light of her extensive cooperation with federal prosecutors in their case against Sam Bankman-Fried, her former boyfriend and the founder of the collapsed cryptocurrency exchange FTX.
Ellison, 29, is facing sentencing for her guilty plea to conspiracy and fraud charges from December 2022. Her attorneys highlighted her immediate and ongoing cooperation with federal authorities following the downfall of FTX and its associated companies in November 2022.
The memorandum underscores Ellison’s remorse for her actions, stating, “Caroline blames no one but herself for what she did.” The document expresses that she deeply regrets her involvement and will carry the associated shame throughout her life.
Ellison’s legal team, comprising Anjan Sahni, Stephanie Avakian, Peter Neiman, and Nicholas Werle from Wilmer Cutler Pickering Hale and Dorr, argues that her complex relationship with Bankman-Fried significantly impacted her moral judgment. The memo explains that under Bankman-Fried’s influence, she engaged in actions she recognized as wrong, contributing to the misappropriation of billions of dollars. It notes that throughout their relationship, Ellison lived in constant fear of the repercussions that would arise if she attempted to separate herself from Bankman-Fried.
The filing further reveals that when FTX ultimately collapsed, Ellison experienced profound sadness for the individuals affected by their actions but also felt a sense of relief at no longer having to continue the deceit and theft directed by Bankman-Fried.
Bankman-Fried, now 32, was sentenced in March to 25 years in prison and ordered to forfeit $11 billion. He has since appealed his sentence, which continues to attract significant media attention.
Since her testimony against Bankman-Fried during his trial, Ellison has focused on rebuilding her life, although her attorneys indicate that the intense media scrutiny has rendered her unemployable for the foreseeable future. The memo details her ongoing negotiations with the governor and FTX debtors, which are expected to result in her losing any earnings obtained during her time at Alameda Research.
Additionally, Ellison has settled with the plaintiff’s steering committee involved in the multidistrict litigation related to FTX, as stated by her legal representatives.
The attorneys recommended that Ellison be sentenced to time-served, along with three years of supervised release, in accordance with the Probation Department’s (PSR) terms.
Ellison’s sentencing hearing is scheduled for September 24, 2024, before U.S. District Judge Lewis Kaplan in the Southern District of New York.
Please contact BlockTribune for access to a copy of this filing.
