Caroline Ellison, the ex-girlfriend of convicted crypto fraudster Sam Bankman Freed, has asked a federal judge not to send her to prison for stealing $8 billion from clients of the bankrupt FTX exchange.
In a court filing just before midnight on Tuesday, Ellison's lawyers told U.S. District Judge Lewis Kaplan in Manhattan that the former executive at FTX sister company Alameda Research deserves leniency for helping prosecutors build a successful criminal case against Bankman Freed.
“From her first meeting with prosecutors, Caroline unflinchingly admitted to her wrongdoing,” her lawyer, Anjan Sahni, wrote. “She has proven time and again to be an extremely credible and valuable cooperating witness.”
Ellison, 29, is scheduled to be sentenced on Sept. 24.
Bankman Freed, 32, is serving a 25-year sentence after being convicted last year in what prosecutors called one of the largest financial frauds in U.S. history. He is appealing his conviction and sentence.
A spokesman for Bankman Freed declined to comment Wednesday. Representatives for Manhattan U.S. Attorney Damien Williams, who prosecuted Bankman Freed and Ellison, did not immediately respond to requests for comment.
Ellison pleaded guilty to fraud and conspiracy charges in December 2022, just one month after FTX's dramatic collapse.
The collapse rocked financial markets and shattered Bankman Freed's reputation as a philanthropically committed, politically involved, and brilliant entrepreneur.
During Bankman-Fried's trial, Ellison and two other former colleagues testified that the former billionaire directed them to use FTX client funds to cover losses at Alameda Research, the crypto-focused hedge fund where Ellison served as CEO.
Throughout his emotional testimony, Ellison provided jurors with a detailed look at Bankman-Freed's values and character.
She said that as a self-described “utilitarian,” he believed doing the greatest good for the greatest number of people was more important than following rules like “don't lie” or “don't steal.”
Former FTX executives Nishad Singh and Gary Wang have also pleaded guilty to fraud and testified against Bankman Freed, with their sentencing hearings scheduled for October 30 and November 20, respectively.
Former FTX executive Ryan Salameh, who did not cooperate with prosecutors, pleaded guilty to making illegal campaign contributions to campaigns backed by Bankman Freed and was sentenced to seven and a half years in prison in May.
