What to expect at Caroline Ellison’s sentencing tomorrow

Caroline Ellison, the former CEO of Alameda Research, is set to be sentenced by a Manhattan federal court tomorrow.

Ellison has previously pled guilty to conspiring to defraud FTX customers alongside her ex-romantic partner and boss Sam Bankman-Fried (SBF). Bankman-Fried was sentenced in April to 25 years in prison.

Now 29 years old, Ellison has pleaded guilty to two counts of conspiracy to commit wire fraud, each with a maximum prison sentence of 20 years; two counts of wire fraud, each with a maximum sentence of 20 years; one count of conspiracy to commit money laundering with a maximum sentence of 20 years; one count of conspiracy to commit commodities fraud with a maximum sentence of five years; and one count of conspiracy to commit securities fraud with a maximum sentence of five years.

Despite the severity of her crimes and the staggering tally of maximum sentences, practical guidelines and her extensive cooperation with authorities mean that Ellison might not actually serve any time in prison. Her cooperation with authorities — including testifying against FTX founder SBF during his trial last year — helped prosecutors convict him on all seven counts of his fraud.

Caroline Ellison’s sentencing recommendations

Looking ahead to tomorrow’s sentencing, there seems to be widespread agreement about a recommendation of leniency.

Defense’s recommendation: Obviously, Ellison’s own legal team has asked for a sentence that does not involve prison time. Specifically, they have requested three years of ‘supervised release’ without incarceration.

At tomorrow’s sentencing, her lawyers will argue that her prompt, thorough, and mostly unabridged cooperation with US authorities concerning the collapse of FTX and Alameda Research warrants a lenient sentence.

Probation Department’s recommendation: The Probation Department has recommended time served along with three years of supervised release, citing Ellison’s “extraordinary cooperation” with the government and her previously clean criminal record.

Prosecution’s recommendation: It is the job of US prosecutors to pursue just penalties as punishment for crimes and to deter future criminal acts. Although a review of public sources does not indicate their specific recommendation regarding Ellison’s sentencing tomorrow, federal prosecutors have admitted to Ellison’s ‘remarkable cooperation’ and described her collaboration as “significant” and “commendable.”

Read more: Caroline Ellison delivers the financial smut we’ve been waiting for

Ultimately, discretion is given to Judge Lewis Kaplan to rule on Ellison’s punishment for her admitted crimes. Despite her cooperation, Ellison committed many crimes against Americans and played a pivotal role in one of the largest, multibillion-dollar fraud schemes in US history.

Although the outcome could range from a brief prison term, supervised release, or probation, legal experts are unanimous in their prediction that she will receive far less than the 25-year sentence handed to her former boss.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.