Caroline Ellison is about to be sentenced in connection with the collapse of Bankman-Fried's crypto exchange FTX
Caroline Ellison, the former CEO of Alameda Research and ex-girlfriend of disgraced FTX founder Sam Bankman-Fried, will be sentenced at the U.S. District Court for the Southern District of New York in lower Manhattan on Tuesday, Sept. 24, at 3 p.m. ET.
Despite facing serious financial fraud charges and pleading guilty to seven counts, Ellison is requesting no jail time. She potentially faces a maximum sentence of 110 years but secured a plea deal after testifying against Sam Bankman-Fried, or SBF.
Bankman-Fried, the disgraced cryptocurrency executive who was convicted of fraud in the spectacular collapse of the crypto exchange FTX, was sentenced to 25 years in prison in March.
Caroline Ellison, 30, is Sam Bankman-Fried’s ex-girlfriend and former CEO of Alamdea, FTX’s sister company. She was the prosecution’s star witness against Bankman-Fried.
Ellison, a Stanford University graduate and the daughter of MIT professors, admitted that she committed fraud and conspiracy with Bankman-Fried and others and that they defrauded FTX customers and investors.
Ellison is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering.
Ellison’s testimony against SBF accused him of instructing her to hide Alameda’s obligations to FTX by making misleading balance sheets. He was also accused of choosing risky investments despite knowing his customers’ funds would be depleted. Ellison also told the jury Bankman-Fried wanted to be the president of the United States one day.
Ellison has tried to reduce whatever sentence she eventually faces by testifying against Bankman-Fried. Business Insider reported earlier this month that her lawyers said in a sentencing memorandum, “Caroline Ellison is a young person of enormous talent and promise, with a deep commitment to helping others.” Ellison is “focused on rebuilding her life and resolving the civil cases and other consequences arising from her acts at Alameda Research,” the lawyers said.
However, SBF and Ellison’s romantic relationship complicates the case. In her testimony, she said that her former boss and boyfriend corrupted her values and that they both lied for years.
When the company failed, she said she “felt this sense of relief that I didn’t have to lie anymore and that I could start taking responsibility even though I felt indescribably bad.”
Eric Chaffee, a law professor at Case Western Reserve University and director of the Financial Integrity Institute, previously told Quartz that Ellison testified against Bankman-Fried in the hope of receiving a more lenient sentence for her case.
“It is likely that she will receive a reduced sentence,” Chaffee told Quartz, “but with the high-profile nature of the case, that is far from certain.”
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