Caroline Ellison, the former CEO of Alameda Research, has requested that the court refrain from imposing jail time, proposing a sentence of time served with a period of supervised release instead, citing her cooperation in the investigation into FTX’s collapse.
In a sentencing memorandum filed late Tuesday, Ellison’s attorneys stated that the Probation Department had recommended a sentence of time served with three years of supervised release. The lawyers argued that Ellison has fully cooperated with both the government and FTX debtors, providing critical testimony in Sam Bankman-Fried’s trial last year.
“Caroline poses no risk of recidivism and presents no threat to public safety,” her lawyers said in the filing. “It would promote respect for the law to grant leniency, recognizing Caroline’s early disclosure of the crimes, her acceptance of responsibility, and her extensive cooperation with the government.”
Alameda Research, which was closely connected to FTX, both founded by Sam Bankman-Fried, served as the exchange’s primary market maker. The financial ties between Alameda and FTX, particularly the loans from FTX to Alameda, raised concerns about conflicts of interest and the mishandling of customer funds. Bankman-Fried was convicted in March 2024 on seven counts of fraud and conspiracy and sentenced to 25 years in prison.
Ellison, who faces sentencing on September 24 in New York, has been charged with multiple offenses, including conspiracy to commit wire fraud, actual wire fraud, and conspiracy to commit money laundering.
John J. Ray III, the CEO of the FTX bankruptcy estate, supported Ellison’s request, stating she had “provided the Debtors with valuable assistance and cooperation,” leading to the recovery of hundreds of millions of dollars in assets for creditors. Robert J. Cleary, the examiner for the FTX bankruptcy proceedings, also noted Ellison’s cooperation, describing her information as “credible” and “useful.”