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Caroline Ellison Faces up to 110 Years in Prison After Guilty Plea

  • Former CEO of Alameda Research, Caroline Ellison, faces up to 110 years in prison.
  • In her plea bargain, Ellison pleaded guilty to seven counts, including wire, securities and merchandise fraud.
  • She also agreed to pay back the amount to be determined by the court.

Former Alameda Research CEO Caroline Ellison faces up to 110 years in prison after making a plea bargain with the Justice Department.

This is due to Ellison’s plea bargain with the Southern District of New York Attorney’s Office dated December 18th.

According to the plea bargain, Ellison faces seven counts that carry a combined total of up to 110 years in prison. These include conspiracies to commit wire fraud, securities fraud, and commodity fraud. She also faces conspiracy charges for laundering money.

Ellison agreed to waive his defense against the charges. Pursuant to an arrangement with her prosecutor, she also agrees to make damages in an amount determined by the court.

As part of her plea bargain, Ellison must cooperate fully with prosecutors, the FBI, and other law enforcement agencies. If so, you must testify before a grand jury or in court.

Ellison’s attorney did not immediately respond to an insider’s request for comment.

Ellison was the on-off girlfriend of FTX co-founder Sam Bankman-Fried. She was chief of her Alameda Research, a trading company founded by Bankman-Fried. Also at Alameda Research she worked with Bankman-Fried and Ellison was FTX co-founder Gary Wang.

Wang, like Ellison, pleaded guilty to fraud, according to a statement Wednesday by the U.S. Attorney for the Southern District of New York.

Reuters reported in November that Bankman-Fried had quietly transferred $10 billion in customer funds from FTX to Alameda Research. Most of that money is missing, according to Reuters sources, with the amount speculated to be between his $1 billion and his $2 billion.

Bankman-Fried told Reuters he “disagrees with the characterization” of the $10 billion transfer.

“We didn’t secretly transfer,” he told Reuters in a text message at the time. “We had a confusing internal label and misread it.”

Bankman-Fried was extradited from the Bahamas Wednesday night and returned to the United States.

FTX filed for bankruptcy on Nov. 11 after imploding, wiping out billions of dollars in customer funds overnight. Bankman-Fried stepped down as CEO on the same day.