Prosecutors seek leniency in sentencing of Caroline Ellison, central figure in FTX scandal

Caroline Ellison, once a key figure in Sam Bankman-Fried’s cryptocurrency network, could receive a lenient sentence due to her extensive cooperation with federal authorities, the latest indictment documents indicate. Ellison, a former executive at the now-defunct cryptocurrency exchange FTX, is scheduled to be sentenced on Sept. 24, following her guilty plea to fraud charges related to the exchange’s dramatic collapse.

Ellison’s legal team asked Judge Lewis A. Kaplan to impose a sentence of three years’ probation with no prison time, demonstrating his substantial assistance to the prosecution. Although prosecutors declined to suggest a specific sentence, they acknowledged his cooperation as not only significant, but of high quality.

As the star witness in the Bankman-Fried trial, Ellison provided critical testimony over three days, detailing the deceptive practices and events that led to FTX’s collapse. His testimony helped secure a conviction against Bankman-Fried, who is now serving a 25-year sentence for defrauding FTX customers of billions.

Ellison’s defense appeal highlights her deep regret and ongoing remorse for her involvement in the fraud. A former Stanford graduate, Ellison joined Bankman-Fried’s operations in 2018 and was deeply involved in its business and personal life until FTX’s public collapse.

Ellison’s life after her guilty plea has been challenging, with difficulty finding employment due to her high-profile case. Despite these setbacks, she has engaged in extensive volunteer work and pursued personal projects, including writing and educational initiatives.

As sentencing approaches, Ellison’s case remains a focal point in discussions of accountability and redemption in the cryptocurrency industry.