Caroline Ellison Faces Sentencing with 48% Chance of Avoiding Prison for Role in FTX Collapse

Sep 24, 2024, 10:42 AM

Caroline Ellison, the former CEO of Alameda Research and a key witness in the FTX case, is set to be sentenced for her role in the collapse of the cryptocurrency exchange FTX. Ellison, who has pleaded guilty to seven felony counts including fraud and conspiracy, has been cooperating extensively with prosecutors. Polymarket traders suggest she has a 48% chance of avoiding prison time due to her cooperation. Federal prosecutors have acknowledged her 'extraordinary' cooperation, and some experts, including former Bernie Madoff prosecutor Marc Litt, believe it is unlikely she will receive any prison time. Ellison's charges carry a maximum of 110 years, but her cooperation in the case against Sam Bankman-Fried, who is accused of stealing about $8 billion in customer funds, may lead to leniency. Ellison's sentencing is scheduled for 3 p.m. EDT before U.S. District Judge Lewis Kaplan in Manhattan.