Alameda Research’s ex-CEO Caroline Ellison faces up to 110 years in prison.
That’s according to the Dec. 18 agreement between Ellison and prosecutors for the Southern District of New York, in which both parties agreed to a settlement.
Ellison was briefly the partner of FTX co-founder Sam Bankman-Fried. She was the head of Alameda Research, the trading firm founded by Bankman-Fried.
Caroline Ellison, the former executive director of Alameda Research, faces a maximum sentence of 110 years in prison. That’s according to the Dec. 18 agreement between Ellison and prosecutors for the Southern District of New York, in which both parties agreed to a settlement.
According to the agreement, Ellison faces seven charges. The maximum sentence for all adds up to 110 years. Points include conspiracy fraud, securities fraud, and commodity fraud. She also faces charges of conspiracy to launder money.
Ellison is not allowed to defend himself once morest the charges
Ellison agreed to drop any defense once morest the charges. As part of her agreement with the prosecutor, she also agrees to pay compensation, the amount of which the court will determine.
As part of her confession, Ellison must fully cooperate with prosecutors, the Federal Bureau of Investigation (FBI), and all other law enforcement agencies. In addition, she must provide the public prosecutor’s office with documents, papers and evidence and, if requested, testify at court hearings.
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Ten billion dollars of customer money disappeared
Ellison was briefly the girlfriend of FTX co-founder Sam Bankman-Fried. She was the head of Alameda Research, the trading firm founded by Bankman-Fried. Also collaborating with Bankman-Fried and Ellison was fellow FTX co-founder Gary Wang at Alameda Research. Wang, like Ellison, has pleaded guilty to fraud, US attorneys said.
In November, Archyde.com news agency reported that Bankman-Fried secretly transferred $10 billion in client funds from FTX to Alameda Research. Much of that money has disappeared.
Bankman-Fried disagreed. “We didn’t make any clandestine transfers,” he told Archyde.com at the time. “We had a confusing internal caption and misread it.”
On Wednesday evening, Bankman-Fried was extradited from the Bahamas, where he was arrested, and landed back in the United States.
FTX filed for bankruptcy on Nov. 11 following the company imploded and lost billions in customer funds overnight. Bankman-Fried resigned as CEO that same day.
This article was translated from English by Luca Schallenberger. You can find the original here.
This article was updated on December 25, 2022 and first appeared on December 22, 2022.
