Lawyers of FTX’s Caroline Ellison Claim Prison Time Is Unnecessary, Request A Supervised Release

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Attorneys for former CEO of Alameda Research, Caroline Ellison, advocate for a sentence of time served with supervised release instead of jail time. 

This request comes from her sentencing hearing scheduled for September 24 in a New York district court.

The attorneys also filed a motion to redact the personal information of parties sending letters to support Ellison. They claim the letters could contain sensitive information that could put her at risk of harassment. 

Ellison Advocates for a No Jail Sentencing

In a September 10 sentencing memorandum, Ellison’s attorneys said the Probation Department proposed a time-served sentence alongside three years of supervised release. 

The lawyers asked for a lenient sentencing, saying the former Alameda CEO has cooperated with the FTX debtors and the government. They noted that her testimony was helpful in former FTX CEO Sam Bankman-Fried’s trial last year. 

In the filing, the attorneys explained that Ellison would not commit the offense again and would pose no threats to public safety. So, they implored the court to be lenient in its sentencing, recognizing her guilty plea, cooperation, and willingness to accept responsibility for her crimes.

Additionally, in a filing, the lawyers filed a motion to redact the personal information of Ellison’s supporters. The filing suggested that their letters could contain information about Ellison’s living situation that could put her safety at risk.

According to the attorneys, Ellison has been under intense media scrutiny, particularly after Bankman-Fried attempted to release her information. They expressed concerns about her supporters facing a similar challenge or being harassed or doxed. 

Further, the lawyers said Caroline Ellison intends to submit her medical information as part of her sentencing recommendation. She will also provide details of her residential address, the organization where she volunteers, and information about her partner. They want to redact all sensitive information to avoid potential safety risks.

Will Caroline Ellison Go to Prison?

Caroline Ellison is charged for involvement in the FTX collapse and as an accomplice in Sam Bankman-Fried’s fraud scheme. 

She is the former CEO of Alameda Research, a company closely associated with the defunct cryptocurrency exchange FTX. Both companies were founded by Sam Bankman-Fried, with Alameda functioning as FTX’s market maker and liquidity manager. 

In March this year, Sam Bankman-Fried received a 25-year jail sentence for seven fraud and wire fraud conspiracy counts. 

Ellison’s sentencing hearing on September 24 at the US District Court for the Southern District of New York. Her charges include two counts of wire fraud conspiracy, two counts of wire fraud, and one count of money laundering conspiracy, among other offenses.

In a supporting document filed with the sentencing memo, FTX Bankruptcy estate CEO John J. Ray III said Caroline Ellison had provided valuable assistance and cooperated with the debtors. Her assistance led to the recovery of millions of dollars in assets valuable in creditors’ repayment.

Although Ellison faces serious criminal charges, her cooperation and assistance in the FTX trial could gain her a lenient sentence in the upcoming hearing.