Former Alameda Research CEO Caroline Ellison, set to face a sentencing hearing on September 24, may receive a lenient sentence following a recommendation from United States prosecutors.
Caroline Ellison's Legal Proceedings
In a September 17 filing in the US District Court for the Southern District of New York, US Attorneys wrote to Judge Lewis Kaplan to inform him of Ellison’s 'extraordinary cooperation' in the prosecution of former FTX CEO Sam Bankman-Fried. According to prosecutors, she provided 'credible and compelling testimony' against Bankman-Fried.
Cooperation with Authorities
Ellison also actively participated in the investigation into wrongdoing at Alameda Research and FTX. Prosecutors indicated that she was 'forthcoming about her own grave misconduct' in FTX’s collapse. The filing stated: 'Ellison played a core role in Bankman-Fried’s criminal schemes, but as the Government noted in Bankman-Fried’s sentencing submission, only he was involved in all aspects of the schemes.'
Significance of Ellison's Testimony
Ellison never worked at FTX and played no role in designing the coding systems that granted Alameda special treatment on FTX and permitted Alameda to accrue a negative balance on FTX by withdrawing FTX customer funds.
This is a developing story, and further information will be added as it becomes available.
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