Ex-Alameda Research chief executive Caroline Ellison has reached a plea agreement with US authorities, allowing her to escape prosecution for seven charges. This would leave her with just charges of tax violations with immediate release on $250,000 bail.
Ellison struck a deal with the United States Attorney for the Southern District of New York, a document published on Wednesday revealed. The deal noted that Ellison would avoid most of the biggest charges totalling up to 110 years in prison.
Charges levied against Ellison include two counts of wire fraud, conspiring to commit wire fraud and one count of commodities fraud. She also received one count of conspiracy to commit securities fraud against equity investors and a final count of conspiracy to commit money laundering.
In exchange for dropping the largest charges against the former exec, she must fully disclose all information, documents, and other requested data to prosecutors. Despite the plea deal, she may still face charges from authorities in other affected countries.
Along with the $250,000 bond, authorities have required Ellison to surrender her passport, travel documents, and right to leave the US.
FTX Scandal Continues
Sam Bankman-Fried, the disgraced former chief executive for FTX, has been extradited to the US and is heading to the Southern District of New York to stand trial for his crimes.
Bankman-Fried, Ellison, and other executives will face charges of monetary malfeasance over their roles in the collapse of the now-bankrupt crypto exchange platform. FTX filed for Chapter 11 bankruptcy on 11 November after facing a massive bank run on its native token, FTT.
This triggered a huge liquidity crisis and subsequent collapse, triggering market volatility and tightening regulations across multiple countries.
