As Caroline Ellison, the star witness in the prosecution of FTX founder Sam Bankman-Fried, awaits her sentencing, her lawyers are pushing for a lenient punishment. In a recent court filing, they argue that Ellison should receive no prison time for her role in the crypto empire's implosion. But is this a fair plea?

The $64,000 question is: what did Ellison know, and when did she know it? Ellison, who ran Alameda Research, agreed to a plea deal in December 2022, just a month after FTX spiraled into bankruptcy. She pleaded guilty to conspiracy and financial fraud charges, rather than face trial. But did she have a hand in the collapse? Was she aware of Bankman-Fried's machinations, or was she simply a pawn in his game?

It's worth noting that Ellison's lawyers claim she cooperated fully with the government, providing valuable information that helped protect and preserve "hundreds of millions of dollars" in assets. But what about her testimony during Bankman-Fried's trial? Did she really have a change of heart, or was she trying to mitigate her own punishment?

Furthermore, what about the ethics of Ellison's relationship with Bankman-Fried? The filing describes how he manipulated her, telling her she was essential to the business and convincing her to stay while he was involved with others. Did she enable him, or was she a victim of his abuse?

As we ask these questions, we can't help but wonder: what if this assumption is wrong? What might the author have missed?

• What do you think about Ellison's chances of getting off scot-free?
• Did she have a choice in her role in the collapse, or was she a pawn in Bankman-Fried's game?
• Should she be held accountable for her actions, or is she a victim of circumstance?

Will Caroline Ellison Get Off Scot-Free for Her Role in FTX's Collapse?

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