Key witness in trial of FTX founder Sam Bankman-Fried seeks no jail time at upcoming sentencing

NEW YORK — Caroline Ellison, a former prime govt in FTX founder Sam Bankman-Fried ’s collapsed cryptocurrency empire and his former girlfriend, is looking for no jail time at her sentencing later this month.

Attorneys for Ellison made the request shortly earlier than midnight Tuesday in a submitting in Manhattan federal court docket upfront of a sentencing scheduled for Sept. 24.

The legal professionals cited her speedy and in depth cooperation with U.S. authorities when FTX and associated corporations collapsed in November 2022, and so they famous that the court docket’s Probation Division beneficial that she serve no jail time.

Ellison, 29, pleaded responsible almost two years in the past within the prosecution and testified in opposition to Bankman-Fried for almost three days at his trial final November. After his conviction, Bankman-Fried was sentenced to 25 years in jail. With out her cooperation, Ellison may have confronted many years in jail.

“Caroline blames nobody however herself for what she did,” the legal professionals wrote. “She regrets her function deeply and can carry disgrace and regret to her grave.”

Within the presentence arguments, the legal professionals spoke extensively about Ellison’s on-and-off romantic relationship with Bankman-Fried that stretched over a number of years.

They stated the connection and her appointment to a task as chief govt at Alameda Analysis, FTX’s hedge fund affiliate, contributed to her committing crimes at Bankman-Fried’s course.

She testified at trial that that she divulged an enormous fraud to staff even earlier than FTX filed for chapter in November 2022.

She defined to them that funds from FTX traders have been improperly used to cowl billions of {dollars} misplaced by Bankman-Fried in investments or squandered on charity donations, political contributions and purchases that fueled his high-flying way of life.

By early December 2022, she was absolutely cooperating with federal prosecutors, divulging details about Bankman-Fried’s dealings that led on to among the costs introduced in opposition to him within the following weeks, the legal professionals wrote.

“Over time, Caroline’s ethical compass warped,” the legal professionals stated. “At Mr. Bankman-Fried’s course, she took actions that she knew to be improper, serving to him steal billions. She lived in dread, understanding {that a} disastrous collapse was possible, however fearing that disentangling herself would solely hasten that collapse.

“When FTX finally collapsed, Caroline felt intense unhappiness for all of the individuals they’d betrayed, but additionally great aid, as a result of she didn’t should go on mendacity and stealing for Mr. Bankman-Fried,” they added.

Since testifying at Bankman-Fried’s trial, Ellison has continued to endure whilst she has engaged in in depth charity work, written a novel and labored along with her dad and mom on a math enrichment textbook for superior highschool college students, in response to her legal professionals.

“She has been rendered successfully unemployable within the close to time period by the notoriety arising from this case, and the reputational hurt shouldn’t be more likely to abate any time quickly,” they stated. “Caroline was not motivated by greed and didn’t take steps to personally revenue on the expense of shoppers.”

She now has a wholesome romantic relationship and has reconnected with highschool buddies she had misplaced contact with after working for Bankman-Fried from 2017 till November 2022, in response to the court docket papers.

As well as, her legal professionals stated, she is finalizing agreements with the federal government, the FTX debtors, together with a complete settlement with within the FTX-related multidistrict litigation that she expects will depart her with out something she earned whereas employed at Alameda.

Prosecutors have been anticipated to file their presentence arguments previous to sentencing.