Caroline Ellison’s Legal Team Seeks No Jail Time for Role in FTX Collapse

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

Caroline Ellison, former CEO of Alameda Research, is seeking leniency in her sentencing for her involvement in the collapse of FTX.

Her legal team has urged the court to forego prison time, advocating for a sentence of time served combined with supervised release.

In a sentencing memorandum submitted on Tuesday, Ellison’s lawyers said that the U.S. Probation Department has recommended time served with three years of supervised release due to her cooperation with authorities.

Ellison has been a key figure in the ongoing investigation into the downfall of FTX and its former CEO, Sam Bankman-Fried.

Her testimony played a pivotal role in his trial, which culminated in his conviction on seven counts of fraud and conspiracy.

Bankman-Fried was sentenced to 25 years in prison in March 2024.

Alameda Research, the trading firm Ellison led, was tightly intertwined with FTX, raising concerns about potential misuse of customer funds and conflicts of interest due to FTX’s loans to Alameda.

Caroline Ellison's lawyers want to redact parts of her sentencing submission because she "has been the focus of intense media scrutiny and Internet fascination" pic.twitter.com/d2d8Ip98oS

In their filing, Ellison’s legal team stressed her cooperation with both the government and the FTX bankruptcy estate, underscoring that her assistance had facilitated the recovery of hundreds of millions of dollars in assets for creditors.

They argued that Ellison’s actions demonstrated accountability and that she posed no risk of future offenses.

The team maintained that