Caroline Ellison, former CEO of Alameda Research, Sentenced to Two Years in Prison Despite Cooperation in FTX Case
Caroline Ellison, the former CEO of Alameda Research, has been sentenced to 24 months in prison by a Manhattan court, despite her cooperation in the investigation surrounding Sam Bankman-Fried (SBF) and the collapse of FTX. Judge Lewis Kaplan acknowledged Ellison’s cooperation but emphasized the severity of the crimes involved.
Ellison had pleaded guilty to seven charges tied to the collapse of FTX in late 2022. She admitted to conspiring with Bankman-Fried in the misappropriation of billions in customer deposits. Despite the federal Probation Department’s recommendation for no prison time and prosecutors’ requests for leniency, Judge Kaplan decided that the scale of the fraud warranted a prison sentence.
“I’ve seen a lot of cooperators in 30 years. I’ve never seen one quite like Ms. Ellison,” Kaplan stated, highlighting that cooperation did not absolve her of responsibility.
As Ellison begins her sentence, Sam Bankman-Fried continues to fight his conviction. His legal team recently filed an appeal, arguing that trial judge bias and restrictions on evidence led to an unfair trial. They claim that the judge blocked important points, including the possibility of FTX users recovering their funds through bankruptcy, which may have skewed the case by implying irreversible losses.
In addition to ongoing legal battles, FTX is making efforts to reimburse its customers. One potential strategy involves using stablecoins for repayment, but the US Securities and Exchange Commission (SEC) has stated it will oppose any plan involving repayments in cryptocurrency.
Meanwhile, FTX has recently settled its $600 million dispute with Emergent Technologies over Robinhood shares. The US Department of Justice seized the shares in January 2023, following FTX’s collapse in November 2022. On September 1, 2023, Robinhood repurchased the shares for approximately $606 million.
As part of the settlement, Emergent Technologies, co-founded by Bankman-Fried, will receive $14 million from FTX to cover administrative costs. In return, Emergent dropped its claim for 55 million Robinhood shares and cash. The disputed shares involved multiple parties, including FTX, BlockFi, Bankman-Fried, and Emergent Technologies.
MD_DELICACIES
Views: 2
