Polymarket bettors are buzzing with predictions. They foresee that former Alameda Research CEO Caroline Ellison will receive no prison time for her role in the FTX scandal. This anticipation comes ahead of her September 24 sentencing.

According to the official poll, 43% of Polymarket participants believe Sam Bankman-Fried's ex-girlfriend will avoid jail time. Meanwhile, 19% and 28% predict that Ellison will be sentenced to anywhere from 1-11 months and 12-23 months, respectively.

Ellison, the one-time CEO of Alameda Research, pled guilty to fraud and money laundering charges in December 2022. She admitted to participating in Bankman-Fried's massive digital asset scam, which saw $8 billion of FTX investor funds misappropriated.

Ellison testified against the former 'king of crypto' in his whirlwind fall 2023 fraud trial as part of her cooperation deal with the U.S. government.

Her testimony was crucial, and Bankman-Fried was sentenced to 25 years in federal prison and forfeiture of over $11 billion.

Bankman-Fried attempted to discredit Ellison's testimony by releasing several pages of her private diary to The New York Times. The diary chronicled her overwhelming feelings, which led to FTX's collapse in November 2022.

This attempt resulted in revoking the crypto exchange founder's bail before his trial. A recent letter from the U.S. government recommending a lenient sentence for Ellison supported limited jail time.

The letter stated, 'The government cannot think of another cooperating witness in recent history who has received a greater level of attention and harassment.'

The letter further noted, 'The attendant professional consequences of this level of notoriety are obvious and unlikely to be short-lived.'

Caroline Ellison and Ryan Salame Face Legal Consequences

Federal prosecutors commonly issue leniency letters to cooperation deal participants. However, obtaining one depends on the success of their assistance to the case.

Ryan Salame, the former CEO of FTX Digital Markets, refused to cooperate with federal prosecutors and pleaded guilty to criminal charges this past spring. He received a 7.5-year sentence.

Salame tried to revoke his guilty plea after his partner, Michelle Bond, was indicted for campaign finance violations.

Salame claims he reached an agreement with prosecutors to stop investigating Bond if he pled guilty. He now faces potential sanctions for seemingly lying under oath.

Both FTX's CTO Gary Wang and director of engineering Nishad Singh are slated to be sentenced shortly. Their cooperation and the extent of their involvement in the scandal will likely influence their outcomes.

'The government cannot think of another cooperating witness in recent history who has received a greater level of attention and harassment.' - U.S. prosecutors

Ellison's cooperation with the U.S. government and her role as a star witness against Bankman-Fried have put her in a unique position.

Polymarket bettors' varied predictions reflect the unpredictability surrounding her sentencing. As the date approaches, all eyes will be on the courtroom to see if these predictions come true.