According to a late Tuesday filing from her lawyers, Caroline Ellison, the former CEO of Alameda Research, should be sentenced to time served and supervised release.

The request comes ahead of her scheduled sentencing on September 24, 2024, for her involvement in the collapse of the cryptocurrency exchange FTX.

Extraordinary Cooperation

In the Tuesday filing, her legal team emphasized Ellisons extraordinary cooperation with the government, which they say justifies leniency in sentencing. They also referenced a presentence report from the Probation Department that recommends three years of supervised release and no fines.

[Ellison] poses no risk of recidivism and presents no threat to public safety. It would, therefore, promote respect for the law to grant leniency in recognition of [Ellisons] early disclosure of the crimes, her unmitigated acceptance of responsibility for them, and – most importantly – her extensive cooperation with the government, stated the filing.

John J. Ray III, the CEO overseeing the FTX bankruptcy proceedings, highlighted her ‘valuable’ role in assisting his team as they worked to take control of the failing exchange.

Ray’s submission indicated that the FTX bankruptcy estate was nearing a settlement with Ellison, under which she would forfeit nearly all of her remaining assets and continue to support efforts to restructure the exchange and its affiliated entities.

Attorneys leading class action lawsuits against former FTX executives have also credited her with providing essential assistance in recovering funds for the exchange’s creditors. Robert Cleary, a court-appointed examiner in the case, also noted that she had been helpful throughout the process.

Her attorneys supported their request with diary entries, statements about her cooperation with FTXs bankruptcy estate, and character references from colleagues, friends, and family.

While some names in these letters have been redacted due to concerns of harassment or doxing, Inner City Press has requested a hearing to argue that they should be shown. The legal team, however, maintains that the redaction is necessary to protect the writers from potential harm.

Caroline’s Sentencing Date

Ellison, a key associate of FTX founder Sam Bankman-Fried, testified last year that he instructed her to commit fraud and conceal the financial troubles of FTX and Alameda from investors.

Her testimony contributed to Bankman-Frieds conviction on seven counts of fraud and conspiracy. After FTXs collapse in November 2022, she pleaded guilty and cooperated with prosecutors.

Her sentencing, set for September 24 at 3:00 p.m. EDT, will make her the third major figure in the FTX scandal to face judgment, following those for Ryan Salame and Bankman-Fried of 7.5 and 25 years, respectively.