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News

Former Alameda Research CEO Asks Judge to Pardon Fraud Charges

10 hours ago - Around 2 mins mins to read

Key Points:

  • Former Alameda Research CEO Caroline Ellison has requested leniency from the court, citing her cooperation with prosecutors.
  • Ellison will be sentenced on September 24, while two other former FTX executives, Nishad Singh and Gary Wang, will face sentencing later this year.
According to Reuters, former Alameda Research CEO Caroline Ellison is asking for leniency from a federal judge after pleading guilty in connection with the collapse of the FTX cryptocurrency exchange.
Former Alameda Research CEO Asks Judge to Pardon Fraud Charges

Read more: Bankman-Fried Appeal Promoted To Protest 25-Year Prison Sentence

Former Alameda Research CEO Pleads for Leniency Following Guilty Plea in $8bn Fraud Case

Ellison, 29, had been integral to an $8 billion fraud that led to the bankruptcy of FTX, a company once controlled by Sam Bankman-Fried.

In a court filing submitted late Tuesday, Ellison’s lawyers urged U.S. District Judge Lewis Kaplan to spare her from prison, citing her cooperation with prosecutors in their case against Bankman-Fried, who was once her boyfriend.

“From her first meeting with prosecutors, Caroline unflinchingly acknowledged her own wrongdoing,” her lawyer Anjan Sahni said in the filing, adding that she had been a “credible and important” witness.

Sentencing Approaches in the Case of the Former FTX Executives

The former Alameda Research CEO will be sentenced on September 24. Her testimony at Bankman-Fried’s trial was important because she and two other former FTX executives testified to how they had fraudulently used customer funds at Bankman-Fried’s instruction in an attempt to stem losses at Alameda Research. FTX’s collapse in late 2022 shook financial markets, and its rise and fall made Bankman-Fried one of the most stunning reversals of fortune in history.

Bankman-Fried, 32, was sentenced last week to 25 years in prison for orchestrating one of the largest financial frauds in U.S. history. He has appealed the conviction. In her testimony, Ellison gave a personal glimpse into Bankman-Fried’s philosophy, explaining how his utilitarian worldview put what he saw as the greater good over ethical rules.

Two other former executives, Nishad Singh and Gary Wang, who also pleaded guilty, are to be sentenced later this year. A third executive, Ryan Salame, who did not cooperate with prosecutors, was sentenced in May to 7.5 years in prison for unlawful campaign donations tied to the case.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Alameda Research

Caroline Ellison

Former Alameda Research CEO

FTX

Sam Bankman-Fried

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Former Alameda Research CEO Asks Judge to Pardon Fraud Charges

Key Points:

  • Former Alameda Research CEO Caroline Ellison has requested leniency from the court, citing her cooperation with prosecutors.
  • Ellison will be sentenced on September 24, while two other former FTX executives, Nishad Singh and Gary Wang, will face sentencing later this year.
According to Reuters, former Alameda Research CEO Caroline Ellison is asking for leniency from a federal judge after pleading guilty in connection with the collapse of the FTX cryptocurrency exchange.
Former Alameda Research CEO Asks Judge to Pardon Fraud Charges

Read more: Bankman-Fried Appeal Promoted To Protest 25-Year Prison Sentence

Former Alameda Research CEO Pleads for Leniency Following Guilty Plea in $8bn Fraud Case

Ellison, 29, had been integral to an $8 billion fraud that led to the bankruptcy of FTX, a company once controlled by Sam Bankman-Fried.

In a court filing submitted late Tuesday, Ellison’s lawyers urged U.S. District Judge Lewis Kaplan to spare her from prison, citing her cooperation with prosecutors in their case against Bankman-Fried, who was once her boyfriend.

“From her first meeting with prosecutors, Caroline unflinchingly acknowledged her own wrongdoing,” her lawyer Anjan Sahni said in the filing, adding that she had been a “credible and important” witness.

Sentencing Approaches in the Case of the Former FTX Executives

The former Alameda Research CEO will be sentenced on September 24. Her testimony at Bankman-Fried’s trial was important because she and two other former FTX executives testified to how they had fraudulently used customer funds at Bankman-Fried’s instruction in an attempt to stem losses at Alameda Research. FTX’s collapse in late 2022 shook financial markets, and its rise and fall made Bankman-Fried one of the most stunning reversals of fortune in history.

Bankman-Fried, 32, was sentenced last week to 25 years in prison for orchestrating one of the largest financial frauds in U.S. history. He has appealed the conviction. In her testimony, Ellison gave a personal glimpse into Bankman-Fried’s philosophy, explaining how his utilitarian worldview put what he saw as the greater good over ethical rules.

Two other former executives, Nishad Singh and Gary Wang, who also pleaded guilty, are to be sentenced later this year. A third executive, Ryan Salame, who did not cooperate with prosecutors, was sentenced in May to 7.5 years in prison for unlawful campaign donations tied to the case.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.