Caroline Ellison Wants No Prison Time For Role In FTX Collapse

Caroline Ellison, a former top executive at collapsed cryptocurrency exchange FTX and the ex-girlfriend of FTX founder Sam Bankman-Fried who played a role in the theft of $8 billion from FTX customers, now seeks leniency. She had pleaded guilty to multiple fraud and conspiracy charges in relation to the exchange's meltdown.

Ellison, the former CEO of FTX's sister company Alameda Research, provided crucial testimony during SBF's trial. She revealed that Bankman-Fried, who is now serving 25 years for his crimes resulting in the exchange's spectacular collapse, directed her to use FTX customer money for other purposes outside FTX operations.

Ellison's Lawyers Seek Time Served

In a late Tuesday filing, Ellison's lawyers urged the court to give leniency to the former crypto executive, recommending "a sentence of time served with three years of supervised release," citing her "extraordinary cooperation with the government, her otherwise unblemished record, and the numerous testimonials of Caroline's honesty and ethical behavior both before she started working at Alameda and since she left Alameda."

Her lawyers further noted how Ellison posed no risk of recidivism and presented no threat to the public's safety. They highlighted how she disclosed her crimes early on and accepted responsibility for the role her actions played in the exchange's fall.

Ellison's lawyers also said such a sentence will "promote respect for the law, because it would incentivize people involved in a fraud to do what Caroline did," which is, becoming a star witness for the prosecution in Bankman-Fried's trial.

Ellison and SBF's History

According to Ellison, who appeared for three days as a witness in SBF's trial, her romantic relationship with SBF started around the fall of 2018, and they dated on and off for a couple of years. He allegedly used to say there was a 5% chance he would be elected as president in the future.

Notably, Ellison's lawyers said in Tuesday's filing that their client repeatedly wanted to quit Alameda but SBF allegedly "convinced her to stay, telling her she was essential to the survival of the business, and that he loved her (while also perversely demonstrating that he considered her not good enough to be seen in public with him at high-profile events)."

The media noted how Ellison, during her testimony in last year's trial, spoke confidently and with clarity as she provided the court with a deep dive into FTX and Alameda's twisted business practices.

Crypto Reacts to Ellison's Request

As news of Ellison's request for time served and a period of supervised release emerged, cryptocurrency users have been reacting, with some arguing how she is just as guilty as her former lover and boss.

Crypto YouTuber Tiffany Fong said it was "wild" for Ellison to make such a request, adding that she believes the ex-Alameda CEO was "nearly" as responsible as Bankman-Fried.

X user @PhucYuThu said she "definitely deserves hard prison time" for the role she played in one of the biggest frauds in the history of the crypto industry.

Stocktwits lead crypto analyst Jonathan Morgan said that while Ellison may have been a major player in the FTX-Alameda fraud, "her full cooperation is worth a lot" in SFB's case, at least for the government.

Ellison is set for sentencing on Sept. 24. She will hear her sentence in the same court that gave Bankman-Fried more than two decades of jail time.