Clicky

  • Login
  • Register
  • Submit Your Content
  • Contact Us
Wednesday, September 25, 2024
World Tribune
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
Submit
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
No Result
View All Result
World Tribune
No Result
View All Result

Bankman-Fried accomplice Caroline Ellison sentenced in FTX fraud

September 25, 2024
in News
Reading Time: 4 mins read
A A
Bankman-Fried accomplice Caroline Ellison sentenced in FTX fraud
0
SHARES
ShareShareShareShareShare

READ ALSO

U.S. Steel CEO defends planned sale to Japan’s Nippon, believes deal will ‘close on its merits’

‘We have much more on the way, if they will continue,’ Israel’s president warns Hezbollah

Bankman-Fried accomplice Caroline Ellison sentenced in FTX fraud

Caroline Ellison, the star witness in the prosecution of her former boyfriend, FTX founder Sam Bankman-Fried, was sentenced Tuesday in New York federal court to two years in prison and ordered to forfeit $11 billion for her role in the massive fraud and conspiracy that doomed the cryptocurrency exchange once valued at $32 billion.

The prison term was significantly stiffer than the recommendation by the federal Probation Department that Judge Lewis Kaplan sentence Ellison to three years of supervised release, with no time at all behind bars.

Defense lawyers also had requested a no-prison sentence for Ellison, who had run the hedge fund Alameda Research, which had received much of the $8 billion in customer funds looted by Bankman-Fried from FTX. The stolen money was used for Alameda’s trading operation and other purposes.

Caroline Ellison, former CEO of Alameda Research LLC, right, arrives at court in New York on Sept. 24, 2024.

Michael Nagle | Bloomberg | Getty Images

While Kaplan praised Ellison for her extensive cooperation with prosecutors — which led to the conviction of Bankman-Fried — the judge said her criminal sentence needed to deter other potential bad actors from committing fraud.

The judge said that the FTX case is probably the greatest financial fraud perpetrated in the history of the United States, and because of that a “literal get-out-of-jail-free card I can’t agree to,” Kaplan said in U.S. District Court in Manhattan, where Ellison’s parents and two sisters looked on from the courtroom’s gallery.

Caroline Ellison, former chief executive officer of Alameda Research LLC, at podium giving her sentencing statement in court in New York, US, on September 24, 2024.

Courtesy: Elizabeth Williams

“I’ve seen a lot of cooperators over the years and I’ve never seen one quite like Miss Ellison,” said Kaplan, who also said he believed that Ellison was genuinely remorseful for her crimes and that her cooperation carried a steep price for her emotionally.

Assistant U.S. Attorney Danielle Sassoon urged Kaplan for leniency citing Ellison’s consistent truthfulness while refusing to minimize her role in the fraud. Sassoon also said she could not overstate Ellison’s assistance in convicting Bankman-Fried.

Ellison’s attorney, Anjan Sahni, urged Kaplan to give Ellison a second chance saying she has “recovered her moral compass” and “profoundly regrets” not leaving FTX and Bankman-Fried’s orbit.

Ellison read from a statement in a shaky voice while crying at times as she apologized to the people she had hurt and said she was deeply ashamed. She also said she was sorry for not being brave enough to walk away from FTX and Bankman-Fried.

Former cryptocurrency executive Caroline Ellison stands before U.S. District Judge Lewis Kaplan, during a hearing where she was sentenced to two years in prison for her role in her former boyfriend Sam Bankman-Fried’s theft of $8 billion in customer funds from the now-bankrupt FTX exchange he founded, at Federal Court in New York City, U.S., September 24, 2024 in this courtroom sketch.

Jane Rosenberg | Reuters

Kaplan allowed Ellison to remain free on bail until she surrenders to prison either on or after Nov. 7.

Ellison reached a plea deal with prosecutors in December 2022, a month after FTX spiraled into bankruptcy. She pleaded guilty to conspiracy and financial fraud charges.

Bankman-Fried, in contrast, chose to stand trial and was convicted of all seven criminal fraud charges against him in the same courthouse where she was sentenced.

He was sentenced to 25 years in prison in March and also was ordered to pay $11 billion in forfeiture by Kaplan.

Bankman-Fried since then has appealed his conviction, and requested a new trial and a different judge, arguing that Kaplan was biased against him.

Two other former FTX executives, Gary Wang and Nishad Singh, are scheduled to be sentenced later this year. Like Ellison, they pleaded guilty instead of standing trial.

On Tuesday, before sentencing Ellison, Kaplan contrasted her conduct after she was charged with that of Bankman-Fried.

While the FTX founder had denied criminal conduct, she cooperated with authorities, Kaplan noted.

“It didn’t work out so well” for Bankman-Fried, in part because of Ellison’s cooperation, the judge said.

Kaplan credited Ellison for providing prosecutors with seven fake spreadsheets, which he called “one of the huge pieces of evidence in the case” against Bankman-Fried.

Late Monday, Ellison’s attorneys in a court filing said they had finalized financial settlements with prosecutors and the FTX debtor’s estate.

The filing did not say how much she would pay in those settlements, which are separate from the forfeiture order, but it was already known that Ellison’s $10 million in shares in the AI startup Anthropic, which have grown substantially since she first bought them, provide the bulk value of her settlements.

Both Bankman-Fried and Ellison had faced the same statutory maximum sentence of about 110 years in prison for their crimes.

But defendants in criminal cases who cooperate with prosecutors instead of fighting the charges particularly in white-collar cases such as FTX, often receive leniency when they are sentenced.

FTX founder Sam Bankman-Fried appeals fraud conviction

Credit: Source link

ShareTweetSendSharePin
Previous Post

Alaska Air gets credit rating knocked down to junk status

Next Post

Orioles demote Eloy Jimenez to Triple-A before critical Yankees series

Related Posts

U.S. Steel CEO defends planned sale to Japan’s Nippon, believes deal will ‘close on its merits’
News

U.S. Steel CEO defends planned sale to Japan’s Nippon, believes deal will ‘close on its merits’

September 24, 2024
‘We have much more on the way, if they will continue,’ Israel’s president warns Hezbollah
News

‘We have much more on the way, if they will continue,’ Israel’s president warns Hezbollah

September 24, 2024
Commerzbank board member warns of job losses with hostile UniCredit
News

Commerzbank board member warns of job losses with hostile UniCredit

September 24, 2024
stock moves, news, data and earnings
News

stock moves, news, data and earnings

September 24, 2024
China will cut reserve requirement ratio by 50 basis points, PBOC chief says
News

China will cut reserve requirement ratio by 50 basis points, PBOC chief says

September 24, 2024
Trump Media stock hits new low after DJT lockup lifts
News

Trump Media stock hits new low after DJT lockup lifts

September 23, 2024
Next Post
Orioles demote Eloy Jimenez to Triple-A before critical Yankees series

Orioles demote Eloy Jimenez to Triple-A before critical Yankees series

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

What's New Here!

This Anker 5K power bank for iPhones is cheaper than ever

This Anker 5K power bank for iPhones is cheaper than ever

September 6, 2024
Apple receives FDA clearance for sleep apnea and hearing aid technology

Apple receives FDA clearance for sleep apnea and hearing aid technology

September 16, 2024
Britain’s finance minister calls for spending discipline but no return to austerity

Britain’s finance minister calls for spending discipline but no return to austerity

September 23, 2024
The ‘audio earrings’ Kamala Harris didn’t wear during the debate barely even exist

The ‘audio earrings’ Kamala Harris didn’t wear during the debate barely even exist

September 11, 2024
Roku’s new feature will turn your TV into a fancy art delivery system

Roku’s new feature will turn your TV into a fancy art delivery system

September 5, 2024
Apple’s M3 iMac is down to a record-low price ahead of October Prime Day

Apple’s M3 iMac is down to a record-low price ahead of October Prime Day

September 18, 2024
NHS Partners with Alphabet’s Wing, Apian for drone blood sample delivery

NHS Partners with Alphabet’s Wing, Apian for drone blood sample delivery

September 24, 2024

About

World Tribune is an online news portal that shares the latest news on world, business, health, tech, sports, and related topics.

Follow us

Recent Posts

  • Orioles demote Eloy Jimenez to Triple-A before critical Yankees series
  • Bankman-Fried accomplice Caroline Ellison sentenced in FTX fraud
  • Alaska Air gets credit rating knocked down to junk status
  • Fox rejects Netflix request for Tom Brady on Christmas NFL game

Newslatter

Loading
  • Submit Your Content
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2024 World Tribune - All Rights Reserved!

No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food

© 2024 World Tribune - All Rights Reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In