A Manhattan federal court schedules the sentencing hearing date for former FTX and Alameda executive Caroline Ellison.
Ellison’s sentencing hearing will be held on September 24 at 3:00 PM (EDT). Notably, it will take place in the same courthouse where FTX founder Sam Bankman-Fried’s (SBF) trial occurred.
Third FTX Exec to Undergo Sentencing
Ellison will be the third major FTX executive to face sentencing. It bears mentioning that FTX founder Bankman-Fried and Ryan Salame of FTX Digital Markets have already witnessed their sentences. Both SBF and Salame received sentences of 25 years and 7.5 years in prison, respectively.
Additionally, the court will sentence two other FTX-associated executives, Nishad Singh and Gary Wang, on October 30 and November 20, respectively.
Ellison Counsel Seeks No Jail Term for Client
Meanwhile, Ellison’s lawyers request that the court refrain from sentencing their client to prison, citing her guilty plea and extensive cooperation with authorities.
In 2022, Ellison pleaded guilty to her involvement in the fraudulent operations that led to the devastating collapse of FTX. The Alameda Research CEO contributed immensely to the sentencing of SBF. Notably, she testified against SBF, stating that the FTX founder instructed her to commit fraud.
Without cooperating with authorities, Ellison would have faced extensive prison time that could surpass a decade. However, her lawyers are using her cooperation with the authorities to argue for time served and release under supervision.
According to the court papers, Ellison’s lawyers boosted their arguments by citing a report from the Probation Department, which recommended three years of release under supervision. This report also recommended that the court absolves Ellison of any fine.
In addition, the filing also detailed her background, her isolation during the COVID-19 pandemic, and her unstable romantic relationship with SBF, among others. The late Tuesday filing also included diaries from her family and friends supporting her.
However, Ellison’s lawyers redacted most of these names, arguing that the individuals risk being harassed or doxed.
Mixed Reactions Trail FTX Upcoming Repayment
Recall that the FTX debacle sent shockwaves across the crypto market in 2022, leading to a massive plunge in crypto prices. Interestingly, victims expect to receive full compensation later this year, with the company preparing to repay them $16 billion.
As reported earlier, the payment could come from November to December 2024. The upcoming repayment has stirred mixed reactions within the crypto community, with some users speculating that the move could be bullish for the market.
Conversely, others think crypto prices could take a major hit if FTX repays its creditors in cryptocurrencies, which they would likely liquidate.
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