The strength of Caroline Ellison’s testimony against Sam Bankman-Fried has significantly influenced the judge’s decision to show leniency, according to Paul Tuchmann, a former U.S. prosecutor and current partner at the law firm Wiggin and Dana.
During her testimony at Bankman-Fried’s criminal trial in October 2023, Ellison portrayed her former boyfriend as the mastermind behind the FTX fraud scheme. On the witness stand, she described Bankman-Fried as assertive and calculating, detailing his numerous deceptions, the meticulous management of his public persona, and his distorted view of risk. Ellison told the jury that he was “totally comfortable with taking a risk, as long as he thought it was a positive expected value,” referring to his willingness to engage in high-stakes gambles that could yield significant losses or gains.
Emotional during her testimony, Ellison recalled the “state of dread” she experienced, burdened by guilt over the misappropriated funds. She expressed a twisted sense of relief as FTX began to collapse, admitting, “It’s something that had been on my mind every day, worrying about what would happen when the truth finally came out. I felt a sense of relief that I didn’t have to lie anymore.”
Tuchmann emphasized how crucial it is for the prosecution to have a close associate of the defendant testify, stating, “She was an immensely valuable witness in an immensely important case.” The judge acknowledged her cooperation, noting, “I’ve seen a lot of cooperators in 30 years. I’ve never seen one like Ms. Ellison.” Judge Kaplan highlighted that there was “not one instance” where her testimony conflicted with the substantial evidence presented.
Ellison’s personal sacrifices likely influenced the judge’s more lenient stance. Tuchmann remarked on the “harassment” she faced due to the extensive media attention surrounding the case, as well as the public exposure of her intimate relationship, which he noted would be distressing for anyone. He explained that cooperators who endure significant consequences for their cooperation are often given more credit.
As Ellison prepares for incarceration, other former members of the FTX team await their own sentencing. Nishad Singh and Gary Wang, both ex-FTX executives who have pleaded guilty to fraud, are scheduled to be sentenced on October 30 and November 20, respectively.
On a different front, Bankman-Fried is seeking a retrial to avoid a lengthy prison term, claiming that he was not afforded the presumption of innocence during his trial. His legal team expressed in a recent filing that the judge viewed him as guilty from the start. However, experts believe the chances of the conviction being overturned are low. Naftalis remarked on the difficulty of arguing that a respected judge like Kaplan “got it all wrong,” labeling the appeal as a long shot.
As court proceedings concluded on Tuesday, Ellison’s two younger sisters were seen quietly crying alongside their parents, while one of her lawyers offered a comforting touch to her back. Ellison remained still.
This story is ongoing, and further updates will be provided..
