Caroline Ellison Faces No Criminal Charges; Plea Deal Saves Her 110-Year Prison Term

Caroline Ellison, the former CEO of the Sam Bankman-Fried-founded crypto trading firm Alameda Research, could have been sentenced to a 110-year prison term for her role in the FTX debacle, but with the plea deal she cut with the authorities, the Boston native and math whiz is not facing any criminal charges for now.

Ellison's plea deal agreement with the Southern District of New York (SDNY), dated Dec. 18 and unsealed Thursday, revealed that she will only be prosecuted for criminal tax violations and could be immediately released with a $250,000 bail.

Ellison is accused of seven counts, which include conspiracy to commit wire fraud, securities fraud, and commodities fraud, as well as a charge of conspiracy to commit money laundering.

"The total maximum sentence of incarceration on Counts One through Seven of the Information is 110 years' imprisonment," the plea deal read.

As part of the plea deal, the former Alameda Research CEO won't be allowed to leave the U.S. and will have to forfeit any assets she gained from the money she made with FTX.

Court filings also revealed that Ellison agreed to waive any defenses to the charges and will make restitution with the amount still to be determined by the court.

Ellison also agreed to fully cooperate with the FBI, prosecutors and other law enforcement agencies, as well as provide records, documents and evidence, and testify before a grand jury or court trials when requested.

The court, however, noted that the plea deal does not exempt Ellison from potential tax violations, noting that her testimony against Bankman-Fried and the executives at FTX and Alameda Research could be used against her for tax fraud prosecution.

Ellison, along with FTX co-founder and director of engineering Gary Wang pleaded guilty to fraud, the SDNY said in a Wednesday announcement. It is not yet known if Wang has cut the same deal as Ellison.

On Wednesday, after the SDNY announced that both crypto executives pleaded guilty to fraud, the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission also charged them with fraud.

Bankman-Fried, the disgraced co-founder of FTX returned to the U.S. on Thursday and is scheduled to face criminal charges in New York.

Ellison has hired former SEC chief Stephanie Avakian and several attorneys working at the law firm WilmerHale.

While Bankman-Fried was in the Bahamas, it is believed that Ellison was working with prosecutors, ratting out her former lover and cutting a deal for herself.

Many believe that her visit in New York was the proof of tis speculation.