According to her plea agreement, disgraced FTX crypto entrepreneur Sam Bankman-Fried’s ex-girlfriend Caroline Ellison had up to 110 years in jail on the line before she decided to cooperate with the authorities.
In a deal reached on Monday, the 28-year-old former CEO of the Alameda hedge firm admitted guilt to federal fraud charges.
The document submitted by the US attorney for the Southern District of New York said the following. “The total possible penalty of imprisonment for Counts One through Seven of the Information was 110 years in prison.”
Ellison Agreed to Cooperate
The agreement also states that Gary Wang, a co-founder of FTX, and Ellison had agreed to “cooperate fully” with the government. This is in return for what is likely to be significantly lesser penalties.
Federal investigators allege that Bankman-Fried used investors’ money to fund the Alameda hedge fund. The cryptocurrency exchange FTX collapsed in November. By the summer of this year, Alameda allegedly owed the $8 billion to FTX’s clients.
Accusations on Ellison
Ellison had some serious accusations for her involvement in the scheme. This includes money laundering, commodities fraud, wire fraud, and securities fraud.
Ellison, a maths whiz with a Stanford degree, will release on $250,000 bail. This is in return for his decision to “truthfully entirely disclose every detail concerning all matters” in the inquiry. It’s according to the agreement between the prosecution and defense.
People won’t know the amount of prison time Ellison agreed to serve, if any. It’s until after she is done cooperating. It’s most likely after Bankman-Fried’s trial comes to an end. Deals reached with federal prosecutors are typically kept private after the completion.
It’s with an ankle monitor after being granted a record-breaking $250 million bail bond after being extradited from the Bahamas. The bail amount is a thousand times less than that of her ex-boyfriend, Bankman-Fried. He is in custody at his parents’ Palo Alto home.
Plea Agreement
In accordance with her plea agreement, Massachusetts native Ellison’s parents can’t leave the country. And has to turn over her passport to authorities.
Ellison is still liable for financial harm, according to the plea agreement. And the federal government already filed a second lawsuit against him.
Legal authorities earlier this week explained why they thought Ellison would turn against Bankman-Fried.
The most common statement I hear is, “At the end of each day, I have to keep an eye out for my interests or the interest of my family. Even if I don’t particularly enjoy what I’m asked to do,” asserted Jack Sharman. He’s a white-collar criminal defence attorney at Lightfoot, Franklin & White.
Former federal prosecutor and current white-collar defence attorney Michael Weinstein said, “[Ellison and Wang] will probably undermine many of [Bankman-Fried’s] defences or allegations that they were in charge. Or were carrying out actions without his knowledge.
At The End
Since the FTX scandal broke in November, Ellison has stopped traveling frequently. Last, people saw her on December 4 in New York City while grabbing coffee. And keep a low profile instead of living in the company’s opulent Bahamas penthouse.
Also read: Youtuber Andrew Callaghan Sexual Misconduct Allegations
