How Caroline Ellison managed to avoid 100-year prison sentence
2022.12.22 07:25
How Caroline Ellison managed to avoid 100-year prison sentence
Budrigannews.com – With a plea deal, one of the key witnesses in the ongoing FTX investigation may avoid all seven allegations against her. Under the terms of the agreement, Caroline Ellison, the former CEO of Alameda Research, would only face criminal tax violations charges and could be freed immediately on $250,000 bail.
On December 21, the Office of the United States Attorney for the Southern District of New York published Ellison’s plea agreement. The document says that the former Alameda executive won’t face any major charges, which could have cost her up to 110 years in prison.
Seven counts were leveled against Ellison. She was accused of engaging in and conspiring to commit wire fraud on FTX customers by two people. Another two of them claimed that she conspired with others to commit wire fraud on Alameda Research’s lenders. She was charged with conspiracy to commit commodities fraud in count five, and she was charged with conspiracy to commit securities fraud against equity investors in FTX in count six. She was accused of conspiring to launder money in the seventh count.
In exchange for Ellison’s cooperation, the Attorney’s Office agreed not to prosecute her on any of those seven counts and demanded that she disclose all requested information and documents.
Ellison is not covered by the agreement from any additional charges that may be brought against him by other authorities. Additionally, it excludes the possibility of criminal tax violations being brought to light during the proceedings.
Under the bail conditions of a $250,000 bond, a restriction on Ellison’s ability to leave the United States, and the surrender of all travel documents, the federal prosecutors agreed not to object to Ellison’s release.
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In the meantime, Sam Bankman-Fried, the former CEO of FTX, is currently being held by the FBI and is on his way back to the United States, where he will be taken directly to the Southern District of New York to appear before a judge.
