Ex-Alameda Research CEO Caroline Ellison seeks to avoid jail term ahead of their sentencing. The former executive is relying on her cooperation with prosecutors in uncovering the events leading to the implosion of FTX. The collapse of FTX led to billions in losses sending bearish signals down the crypto market.
Caroline Ellison Hopes To Avoid Prison Sentence
Caroline Ellison’s legal representatives are pushing for no jail time ahead of her sentencing. In a recent court filing, the lawyers relied on her voluntary cooperation with prosecutors in the aftermath of the FTX saga which caused losses in the sector. Legal representatives cited her immediate return from the Bahamas to the United States to assist prosecutors.
The former Alameda Research head assisted regulators as the hedge fund was a sister firm to the Sam Bankman-Fried-run FTX. “Caroline poses no risk of recidivism and presents no threat to public safety,” the filing says. “It would therefore promote respect for the law to grant leniency in recognition of Caroline’s early disclosure of the crimes, her unmitigated acceptance of responsibility for them, and most importantly her extensive cooperation with the government,” the filing read.
After the collapse of FTX, regulators filed lawsuits against executives of the exchange and Alameda Research. Caroline Ellison agreed to a plea deal that helped prosecutors. As a result, she pleaded guilty to charges on fraud and conspiracy charges. In a related development, Ellison’s attorneys requested the court to conceal personal information from supporters’ letters.
Lawyers Point To Three Years Supervised Release
Ahead of the Sept 24 sentencing, the legal representatives argue that Caroline Ellison should be considered based on her otherwise unblemished record. This is in addition to the recommendation by the Probation Department that she should be given a sentence of time served coupled with three years of supervised release.
Similarly, FTX CEO John Ray lauded her efforts as valuable which helped his team recover assets up to “hundreds of millions of dollars.” Meanwhile, losses resulting from the exchange continue to rock the industry. Orlando Bravo, the CEO of Thoma Bravo vowed not to touch crypto again after recording huge losses following the implosion.
David Pokima
David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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