One of many key witnesses within the ongoing 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 would solely be prosecuted for felony tax violations underneath the settlement and could possibly be launched instantly on $250,000 bail.
The plea deal between Ellison and the Workplace of the US Legal professional for the Southern District of New York was published on Dec. 21. In keeping with the doc, the previous Alameda exec will likely be spared of all main prices, which may have seen her sentenced to as much as 110 years in jail.
Ellison was accused of seven counts. Two accused her of committing wire fraud on clients of FTX and interesting and conspiring to take action. One other two alleged she dedicated wire fraud on the lenders of Alameda Analysis and conspired to take action. Rely 5 charged her with conspiracy to commit commodities fraud, and rely six alleged conspiracy to commit securities fraud on FTX’s fairness traders. The seventh rely accused her of conspiring to commit cash laundering.
The Legal professional’s Workplace agreed to not prosecute Ellison on any of these seven counts in change for her cooperation — the entire disclosure of all the knowledge and paperwork demanded by prosecutors.
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The settlement doesn’t present safety in opposition to another prices that Ellison may face from another authorities. It additionally excludes a potential prosecution for felony tax violations, ought to they be revealed by the court docket proceedings.
The federal prosecutors agreed to not object to Ellison’s launch underneath the bail circumstances involving a $250,000 bond, a restriction on leaving 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 FBI and on his approach again to the US, the place he will likely be transported on to the Southern District of New York to seem earlier than a choose.
