Cryptocurrencies

Caroline Ellison faces sentencing for role in FTX collapse

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Caroline Ellison, former CEO of Alameda Research, faces sentencing today, Tuesday, September 24, at the U.S. District Court in Manhattan.

Ellison’s sentencing follows her involvement in the collapse of FTX (CRYPTO:FTT), where she played a significant role in misappropriating billions of dollars from customers to cover Alameda’s losses.

Ellison pleaded guilty to charges including wire fraud, conspiracy to commit securities fraud, and money laundering, which carry a potential maximum sentence of 110 years.

However, due to her cooperation with federal prosecutors and serving as a witness against former FTX CEO Sam Bankman-Fried, she may receive a lighter sentence.

Prosecutors have acknowledged her testimony as "exemplary" and have not recommended a specific prison term.

The case revolves around the downfall of FTX, where Ellison and others used customer funds for high-risk investments and political donations, leading to over $8 billion in losses.

While her defense team is pushing for supervised release without incarceration, the court’s decision today will determine whether she faces prison time.

Crypto traders are speculating on the outcome, with many predicting that Ellison will receive little or no jail time.

Betting platforms indicate a strong belief that she may avoid prison, with a 48% chance being wagered on her receiving no time behind bars.

The court session is set to begin at 3 p.m. ET, where her fate will be decided.

At the time of writing, the FTX (FTT) price was $1.35.

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