One of the important thing witnesses on the continuing FTX investigation might evade all of the seven counts of allegations in opposition to her with a plea deal. Former Alameda Research CEO Caroline Ellison could be prosecuted just for prison tax violations and might be launched instantly by paying the $250,000 bail.
A plea deal between Ellison and the Office of the United States Attorney for the Southern District of New York was revealed on Dec. 21. According to the doc, the previous Alameda exec can be spared of all the most important costs, which might have value her as much as 110 years in jail.
Ellison was alleged by the lawyer on seven counts. Two of them for participating in a conspiracy to commit wire fraud on clients of FTX and the wire fraud itself. Another two for participating in a conspiracy to commit wire fraud on lenders of Alameda Research and the wire fraud itself. Count 5 charged her with conspiracy to commit commodities fraud, depend six — for conspiracy to commit securities fraud to FTX fairness traders. With the seventh depend, she may very well be charged with conspiracy to commit cash laundering.
The Attorney’s Office agrees to not prosecute Ellison on any of the seven counts in alternate for her cooperation — the whole disclosure of all the knowledge and paperwork demanded by the Office.
Related: The consequence of SBF’s prosecution might decide how the IRS treats your FTX losses
The settlement doesn’t present safety in opposition to another costs that Ellison may face from another authorities. It additionally excludes a potential prosecution for prison tax violations, ought to they be revealed by the court docket proceedings.
The Office is not going to object to Ellison’s launch on the bail circumstances, that are the $250,000 bond, the restriction to go away the U.S. and surrendering all journey paperwork.
Meanwhile, the previous CEO of FTX, Sam Bankman-Fried is now in the custody of the Federal Bureau of Investigation (FBI) and on his means again to the U.S., the place he can be transported on to the Southern District of New York to seem earlier than a decide.