Alameda’s Caroline Ellison escapes potentially 110 years in jail via plea deal

One of many key witnesses on the continued FTX investigation might evade all of the seven counts of allegations in opposition to her with a plea deal. Former Alameda Analysis CEO Caroline Ellison can be prosecuted just for felony tax violations and will be launched instantly by paying the $250,000 bail. 

A plea deal between Ellison and the Workplace of the USA Legal professional for the Southern District of New York was printed on Dec. 21. Based on the doc, the previous Alameda exec will likely be spared of all the most important prices, which might have value her as much as 110 years in jail.

Ellison was alleged by the legal professional on seven counts. Two of them for participating in a conspiracy to commit wire fraud on clients of FTX and the wire fraud itself. One other two for participating in a conspiracy to commit wire fraud on lenders of Alameda Analysis and the wire fraud itself. Rely 5 charged her with conspiracy to commit commodities fraud, rely six — for conspiracy to commit securities fraud to FTX fairness buyers. With the seventh rely, she might be charged with conspiracy to commit cash laundering.

The Legal professional’s Workplace agrees to not prosecute Ellison on any of the seven counts in alternate for her cooperation — the whole disclosure of all the data and paperwork demanded by the Workplace.

Associated: The end result of SBF’s prosecution might decide how the IRS treats your FTX losses

The settlement doesn’t present safety in opposition to every other prices that Ellison would possibly face from every other authorities. It additionally excludes a doable prosecution for felony tax violations, ought to they be revealed by the court docket proceedings.

The Workplace won’t object to Ellison’s launch on the bail circumstances, that are the $250,000 bond, the restriction to depart the U.S. and surrendering all journey paperwork.

In the meantime, the previous CEO of FTX, Sam Bankman-Fried is now within the custody of the Federal Bureau of Investigation (FBI) and on his method again to the U.S., the place he will likely be transported on to the Southern District of New York to seem earlier than a choose.