Ellison's Cooperation with Authorities

Former Alameda Research CEO Caroline Ellison is on the verge of possibly receiving a lenient sentence. This follows a recommendation from United States prosecutors.

Ellison is set to face her sentencing hearing on September 24, 2023. Her cooperation has been described as 'extraordinary' in the prosecution of former FTX CEO Sam Bankman-Fried.

Prosecutors' Filing

In a September 17 filing in the US District Court for the Southern District of New York, US Attorneys informed Judge Lewis Kaplan about Ellison's significant cooperation. They highlighted her assistance in uncovering the 'wrongdoing at Alameda Research and FTX.'

According to the filing, Ellison provided 'credible and compelling testimony' against Bankman-Fried at trial and was 'forthcoming about her own grave misconduct' in the collapse of FTX.

Ellison's Role in the Scheme

The filing offered insights into Ellison's involvement in the criminal activities. 'Ellison played a core role in Bankman-Fried's criminal schemes, but as the Government noted in Bankman-Fried's sentencing submission, only he was involved in all schemes,' stated the document.

It clarified that Ellison never worked at FTX and had no role in designing the coding systems that granted Alameda special treatment on FTX.

'Ellison never worked at FTX and played no role in designing the coding systems that granted Alameda special treatment on FTX and permitted Alameda to accrue a negative balance on FTX by withdrawing FTX customer funds,' the filing emphasized.

Future Developments

This case continues to unfold. The information about Ellison's cooperation and the potential leniency in her sentencing is a developing story. Further updates will follow as new details emerge.

Ellison's sentencing hearing on September 24 will clarify her fate. Her cooperation might lead to a lighter sentence, but Judge Lewis Kaplan will make the final decision.