Caroline Ellison Sentenced To Two Years In Jail For Role In FTX Fraud, Must Forfeit $11 Billion (theverge.com)
- Reference: 0175125089
- News link: https://slashdot.org/story/24/09/24/2041203/caroline-ellison-sentenced-to-two-years-in-jail-for-role-in-ftx-fraud-must-forfeit-11-billion
- Source link: https://www.theverge.com/2024/9/24/24249490/caroline-ellison-sentence-ftx-alameda-fraud
> Ellison pleaded guilty to two counts of wire fraud and five conspiracy counts in December 2022 as part of a cooperation agreement with the government. Prosecutors had recommended a lenient sentence because of Ellison's "extraordinary" and "very timely" cooperation. Her own lawyers asked for no jail time, as did the federal Probation Department.
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> Ellison was the key witness at the trial of FTX cofounder Sam Bankman-Fried, where she testified for three days. A statement submitted by the prosecution before Ellison's sentencing said the speed at which she came clean made it possible to indict her ex-boyfriend Bankman-Fried quickly, "ensuring that he did not flee the Bahamas or further obstruct the government's investigation." The document also noted that Ellison was completely and immediately forthcoming in her meetings with the government.
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> Ellison was also prompt in assisting John J. Ray, the new CEO charged with cleaning up the FTX mess, in locating and recovering customer assets, according to a statement written by Ray submitted by the defense. Her "early cooperation" was "valuable" in recovering debtors' assets, he wrote. Ellison is working on a deal where she will turn over "substantially all of her remaining assets after satisfying her forfeiture obligations" to the FTX debtors.
[1] https://www.theverge.com/2024/9/24/24249490/caroline-ellison-sentence-ftx-alameda-fraud
[2] https://www.bloomberg.com/news/live-blog/2024-09-24/caroline-ellison-sentencing
Re: (Score:2)
> ...political strongmen survive ...
Most egregiously, you omitted the most successful dictator. Your troll lacked impact because you didn't include "Putin" in your pro-far-right rant: Buzz-words really do make a difference.
I give you a D+ grade, "Must work harder".
Re: Amazing how fast people get jailed for politic (Score:2)
The comment you responded to was likely written by the late Prigozhin's own troll farmers using GPT!
Sickeningly pop culture. (Score:1)
We watched this all happen and so few questioned the shenanigans, just shrugged and waited for their check.
Re: (Score:2)
You say that like it's not still going on. Only the federal government has the authority to issue currency in the US, but we let cryptocurrency operate freely.
Re: Not news for nerds (Score:1)
Well okay, she looks nerdy, does that make it newsy enough for nerds?
I don't mean in a bad way, she's kinda cute, actually.
Re: (Score:2)
All I know is that if there is a sex tape leaked at some point, PLEASE FOR THE LOVE OF GOD DON'T SHOW US. I'd really rather not even know it ever happened.
Re: (Score:2)
Hey, she's poly so [1]you might have a chance to get into her ranking system. [nypost.com] You can join the vicious struggle for the higher ranks. She already gave you clues on her desires:
> "I get a lot of pleasure from doing things that are hard, unpleasant, physically taxing, or emotionally painful...I like when a man is physically strong enough to overpower me.”
So I don't know maybe write her letters in prison if you're into that. Write the letters in code so they are unpleasant to read.
[1] https://nypost.com/2022/11/17/ftx-linked-caroline-ellison-was-into-chinese-harem-polyamory/
SBF is no criminal mastermind (Score:4, Insightful)
don't break up with the girlfriend who you felony crimed with
Re: (Score:1)
But the chance of one causing the other is pretty high.
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> If you're SBF, why would you date an ugly girl like this?
Maybe he figured she wasn't a gold digger. Considering that she's giving away all the money to Uncle Sam, he was probably right.
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She's not giving anything away. The total fraud at SBF was $11B. You will notice that both she and the ex b/f each were required to forfeit $11B. The idea is that frauds like this result in joint and severable liability. That's a fancy way of saying the government can collect the entire amount of the fraud from any participant.
Re: (Score:2)
The idea is that frauds like this result in joint and severable liability.
This is not exactly Joint and severable liability for the fraud if EACH have been ordered individually to Forfeit $11 Billion.
Meaning even after she forfeits $11 Billion: her ex b/f is still required to forfeit $11 Billion. This means that the total everyone is required to forfeit will be at least twice as much as the fraud.
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> If you're SBF, why would you date an ugly girl like this?
They look like each other.
She should have gotten two (Score:1)
Just for that face!
Re: (Score:2)
> ... driving rod ...
It's "divining rod": You included the original mis-type from Reddit: Reddit copy-pasta shows the original quote, so this is double-shitty copy-pasta.
I will include the reply from "gattsuru":
Trivially, places that allow Real People [in] Fiction tend to get unpleasant pretty fast, in ways far broader than the RPF itself. That might be a correlation sorta thing, but it's still the sorta correlation that winks-and-points.
It is, almost by definition, not merely spam or meaningless spam, but high-w
Full quote (Score:4, Informative)
Here is what the judge saw that made her different:
> The judge says that he can’t remember a time when Ellison was even slightly inconsistent during her testimony. “I’ve seen a lot of cooperators in 30 years. I’ve never seen one quite like Ms. Ellison,” the judge said.
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> She was caught in no inconsistencies in her testimony, which was “very incriminating of herself and she pulled no punches about it.”
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> She was caught in no inconsistencies in her testimony, which was “very incriminating of herself and she pulled no punches about it.”
She knew the scam pissed off the rich and powerful, and she valued her life more than her money. She doesn't want to end up dead in some "accident" or in prison.
Re: Full quote (Score:2)
SBF didn't seem to realize it.
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the judge also said:
"The judge said the FTX case is probably the greatest financial fraud perpetrated in the history of the U.S., and because of that a “literal get-out-of-jail-free card I can’t agree to,” Kaplan said in U.S. District Court in Manhattan, where Ellison’s parents and two sisters looked on from the courtroom’s gallery"
Even with full compliance her getting two years is a laughable joke.
Re: Full quote (Score:2)
I haven't followed the case closely enough to have a strong opinion on who deserves what. However I see no reason to disagree with the judge here.
Where did that $11 billion come from? (Score:2)
Forfeit would seem to indicate she has that sort of money about.
Refreshing for a criminal (Score:2)
Ellison committed crimes. Yes. But she is quite different from your ordinary criminal. She felt quite guilty about the whole thing as it was going on. And she owned up to all of it when asked. No excuses. No blaming others for her misdeeds. And returned all of the money. She stuck me as an odd one from her early interviews when FTX blew up.
Only if more of our criminals were like her.
Everyone was paid back (Score:3)
What I didn't realise is that after liquidation, sale of assets etc all of the shortfall was 100% covered with very large sums of money left over. There was indeed a "dragons hoard" of money. Liquidation realised $16 billion in assets with $12billion in cash. No-one lost money although some people were very upset that they were not paid more due to increases in crypto value.
I do not deny or disagree with the outcome of her trail and her sentence but Sam's 25 year sentence when you look at it from the financial angle is manifestly severe.
Re: Everyone was paid back (Score:1)
It sounds like you're saying it's ok to siphon off customer funds as long as the underlying assets are in a bull market.
"forfeit $11 bn"? (Score:2, Insightful)
...sounds like she gets to keep a decent amount.
On these giant grift games, the fines need to be "all but $x" where it's everything they own or will own, aside from enough to keep them of the poverty rolls.
Re: "forfeit $11 bn"? (Score:4)
Apparently she never touched the money and is giving up the entire amount she made as a result of FTX/Alameda. If the money or a large amount was missing and not recovered before sentencing, that likely would've landed her a longer sentence.
Re: (Score:1)
Even if the 11B figure represents every dollar she originally scammed, she might have made a staggering amount in investments in the mean time.
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she might have made a staggering amount in investments in the mean time.
Which courts don't care about for some reason. They never or hardly ever take lost or gained business opportunities into account.
If someone steals $1 billion from you and you sue them, Then most likely the most you can ever be awarded is the $1 Billion.
The courts will Not award you for your "lost gains" or "lost returns" that could have been expected from investing the $1 billion over all that time you had been deprived of it. I