Caroline Ellison, former co-CEO of Alameda Research, has requested no jail time for her role in the FTX collapse, according to a Sept. 10 court filing.
Her legal team argued that her sentence should be limited to time served, followed by supervised release, because of her extensive cooperation with the authorities during Sam Bankman-Friedâs trial.
Further, the lawyers noted that the Probation Department recommended a time-served sentence and three years of supervised release.
They stated:
âThe Probation Department recommends a sentence of time served with three years of supervised release. The PSR grounds this recommendation in Carolineâs extraordinary cooperation with the government, her otherwise unblemished record, and the numerous testimonials of Carolineâs honesty and ethical behavior both before she started working at Alameda and since she left Alameda.â
The defense also argued that Ellison poses no risk of repeating her offenses and is not a threat to public safety. They claimed that her early admission of guilt, full responsibility, and extensive cooperation warrant leniency and respect for the law.
Ellisonâs cooperation
The court filing also contained statements from her former colleagues, friends, and family, illustrating how Ellisonâs helpfulness aided the US authoritiesâ case against the incarcerated founder of the defunct crypto exchange.
Notably, John J. Ray III, the CEO overseeing FTXâs bankruptcy estate, credited Ellisonâs assistance as âvaluableâ in stabilizing the exchange during its collapse. He said her cooperation helped his team protect and preserve âhundreds of millions of dollars in Debtor assetsâ to benefit creditors and understand FTXâs systems.
Meanwhile, attorneys representing class action lawsuits against FTX executives praised her contributions to recovering creditor funds.
Robert Cleary, the court-appointed examiner, echoed similar sentiments in his brief remarks about Ellisonâs helpfulness.
Additionally, the lawyers pointed out that excerpts from Ellisonâs diary provide insights into her mindset while at Alameda. They also noted that her romantic feelings for him complicated her work relationship with Bankman-Fried.
Ellisonâs sentencing is set for Sept. 24, 2024.
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