Caroline Ellison, a former FTX executive, has asked a federal judge to avoid prison time after pleading guilty to her role in the $8 billion theft from FTX customers. According to a recent Reuters report, in a late-night filing on Tuesday, Ellison's lawyers requested leniency, citing her significant cooperation in building the case against Sam Bankman-Fried, her former partner.

Ellison's lawyer, Anjan Sahni, emphasized her full acknowledgment of wrongdoing and her valuable role as a witness. Ellison, 29, is scheduled to be sentenced on September 24.

Bankman-Fried, 32, is serving a 25-year prison sentence after his conviction last year for one of the largest financial frauds in U.S. history. He is appealing the conviction.

Ellison had pleaded guilty to fraud and conspiracy charges in December 2022, shortly after FTX's collapse, which severely damaged Bankman-Fried's reputation. At his trial, Ellison and two other former executives testified that Bankman-Fried used FTX funds to cover losses at his hedge fund, Alameda Research. Ellison's testimony revealed Bankman-Fried's prioritization of overall good over rules like "don’t lie" or "don’t steal."

Former FTX executives Nishad Singh and Gary Wang, who also pleaded guilty and testified against Bankman-Fried, will be sentenced on October 30 and November 20. Ryan Salame, another former executive who did not cooperate, was sentenced to 7.5 years in prison in May for illegal campaign donations.

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Reuters