Former Alameda Research CEO Caroline Ellison has asked for leniency from the court after pleading guilty in connection with the collapse of the FTX cryptocurrency exchange.
Caroline Ellison's Court Appeal
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. Ellison, 29, had been integral to an $8 billion fraud that led to the bankruptcy of FTX. 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 Sam Bankman-Fried, who was once her boyfriend.
Upcoming Sentencing
Ellison 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.
Other Former FTX Executives
Besides Caroline Ellison, two other former FTX 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.
The FTX case continues to shake the cryptocurrency community, and the upcoming sentences serve as a reminder of the importance of adhering to ethical and legal standards in the financial industry.
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