24/7 Cryptocurrency News

FTX Collapse: Why Caroline Ellison Can Walk Away With No Jail Term?

Former Alameda Research CEO Caroline Ellison may avoid jail time amid major cooperation with the government in the FTX collapse case.
Published by
FTX Collapse: Why Caroline Ellison Can Walk Away With No Jail Term?

On Tuesday, Alameda Research’s former chief Caroline Elison will be facing her own sentencing for her involvement in the FTX collapse back in November 2022. She’s facing several charges of wire fraud, conspiracy to commit securities fraud, conspiracy to commit commodities fraud as well as money laundering. Despite this, some former federal prosecutors and legal experts believe that Ellison might not face any jail term.

Advertisement

Why Caroline Ellison Can Face No Jail Term

In the US, those involved in white-collar crimes can get some exemption to sentencing considering their cooperation throughout the process. During all of her hearings in the past two years, Alameda Research ex-CEO Caroline Ellison has transparently shared details of several insiders who played some role in the FTX collapse. Former Assistant U.S. Attorney Kevin J. O’Brien said that Ellison’s details proved crucial in cracking this case.

“Because of the closeness of her relationship to Sam, she was able to provide a personal portrait of Bankman-Fried, an elusive character to be sure, that was probably unique in the government’s case,” O’Brien told CNBC.

Previously, the federal Probation Department has suggested “time served with three years of supervised release” for Ellison. It also cited her “extraordinary cooperation with the government” and “otherwise unblemished record”.

Although it’s up to the district judge Lewis Kaplan on whether or not to follow the recommendation, O’Brien stated that, along with a potential fine, it would represent “a fair sentence” given the “enormous value” of Ellison’s cooperation.

Braden Perry, a former senior trial lawyer for the Commodity Futures Trading Commission, said that Ellison is the third executive to be sentenced in the FTX collapse. Despite her involvement in fraudulent activities, “she did not have the same control or directorial authority as SBF, which will likely influence the judge’s decision about imposing a light sentence,” said Perry.

Advertisement

Sentencing in FTX Collapse to Come With Conditions

Caroline Ellison will receive several years of supervised revision and community service even if she faces no jail term. Furthermore, Ellison will face restrictions on trading in crypto and non-crypto markets or traveling abroad.

Ellison’s valuable cooperation portrays her differently from Sam Bankman-Fried who comes across as a repeat offender. While Bankman-Fried’s defense sought a maximum of 6.5 years in prison, Judge Kaplan noted that Ellison’s testimony was key in his decision to sentence Bankman-Fried to nearly four times that.

Following the FTX collapse and bankruptcy, the new administration has cleared the froth and will return $16 billion to creditors. Last week, FTX auditor Prager Metis settled charges with the U.S. Securities and Exchange Commission (SEC).

Advertisement

Share
Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

FLOKI Makes History With First ETP in Europe as Price Surges 30%

FLOKI has announced the launch of the first BNB chain exchange-traded product (ETP) in Europe.…

October 4, 2025
  • 24/7 Cryptocurrency News

BNB Rally to $1,300 Will Continue As Binance Hits Crucial Q3 Milestone, Says Expert

Binance Coin (BNB), the native cryptocurrency of BNB Chain, has surged another 8% today, moving…

October 4, 2025
  • 24/7 Cryptocurrency News

Trump’s Real Estate Moves On-Chain as Hut8 Adds WLFI Tokens to Boost Treasury

Trump’s real estate portfolio is set to go on-chain amid World Liberty Financial’s announcement of…

October 4, 2025
  • 24/7 Cryptocurrency News

ASTER Token Defies Crypto Market Consolidation With 14% Upside, Expert See Next Stop at $3

Despite the broader crypto market consolidation, ASTER token is outperforming with 14% gains in the…

October 4, 2025
  • 24/7 Cryptocurrency News

MetaMask Gears Up for Major MASK Token Airdrop With Reward Points System Launch

MetaMask, Consensys’ Web3 wallet, is set to introduce a reward points system for on-chain activities.…

October 4, 2025
  • 24/7 Cryptocurrency News

Coinbase Joins Ripple and Circle In Applying For National Banking License

Crypto exchange Coinbase has applied for a national trust charter, joining the likes of Ripple,…

October 4, 2025