FTX key witness Caroline Ellison requests not to be sentenced to imprisonment

On September 11, 2024, news from New York. Caroline Ellison, a key witness in the trial of FTX founder Sam Bankman-Fried, requests not to be sentenced to imprisonment in the upcoming sentencing.

Ellison is a former executive in Bankman-Fried's collapsed cryptocurrency empire and also his ex-girlfriend. Her lawyer submitted documents to the Manhattan federal court shortly before midnight on Tuesday in preparation for the sentencing on September 24. The lawyer pointed out that Ellison immediately cooperated extensively with US authorities when FTX and related companies collapsed in November 2022, and the probation department of the court also recommended no imprisonment.

The 29-year-old Ellison pleaded guilty nearly two years ago and testified for nearly three days in Bankman-Fried's trial last November. Bankman-Fried was convicted and sentenced to 25 years in prison. The lawyer emphasized that without Ellison's cooperation, she could face decades in prison. Ellison deeply regrets her actions, and the lawyer said she "will carry shame and remorse to the grave."

In the pre-sentencing debate, the lawyer talked about Ellison's on-and-off romantic relationship with Bankman-Fried over the years, saying she committed crimes under Bankman-Fried's instructions. She testified in the trial that FTX investor funds were misused to support Bankman-Fried's luxurious lifestyle. By early December 2022, Ellison was fully cooperating with federal prosecutors and revealed Bankman-Fried's trading information.

Since testifying, Ellison has continued to suffer while continuing her charitable work, writing novels and compiling extended mathematics textbooks. Due to her notoriety, she cannot find a job in the short term and her reputation has been severely damaged. Currently, Ellison has a healthy romantic relationship and has reconnected with high school friends. She is also finalizing agreements with the government and FTX debtors to reach a comprehensive settlement and is expected to lose what she earned during her time working at Alameda. Prosecutors are expected to submit pre-sentencing arguments before the sentencing.