Home / News / Crypto / News / Caroline Ellison Quotes: Text of Tearful Ex-Alameda Research Chief’s Apology in FTX Sentencing Hearing
News
3 min read

Caroline Ellison Quotes: Text of Tearful Ex-Alameda Research Chief’s Apology in FTX Sentencing Hearing

Published September 25, 2024 10:27 AM
Giuseppe Ciccomascolo
Published September 25, 2024 10:27 AM

Key Takeaways

  • Caroline Ellison expressed deep remorse for her role in the FTX fraud.
  • She acknowledged the immense harm caused and her inability to grasp the scale of the damage fully.
  • Ellison claimed Sam Bankman-Fried’s voice in her head dissuaded her from speaking out sooner.

Caroline Ellison, a key figure in the FTX collapse, expressed deep remorse during her sentencing hearing. In a tearful address, she acknowledged the immense damage caused by her actions and her struggle to grasp its full impact.

Ellison, who served as CEO of Alameda Research, a firm heavily implicated in the FTX fraud, revealed the constant weight of guilt and her desire to come clean.

“Can’t Comprehend the Harm Caused”

During her hearing before the sentence, Ellison had the chance to read a prepared text to Judge Lewis Kaplan. According to people attending the courtroom, the former Alameda Research chief read it quickly and with tears.

She told the judge, “I think on some level my brain can’t even truly comprehend the scale of the harm it caused. That doesn’t mean I don’t try. I am so so sorry.”

“I am deeply ashamed of what we had done,” she added, with her voice breaking.

“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.”

“I Heard Sam’s Voice in My Head”

Ellison, appearing visibly emotional, clasped her hands and looked down at the defense table as the judge was reading the sentence. “Not a day goes by when I don’t think about all the people I hurt,” said Ellison.

“Every time I thought about it, I heard Sam’s voice in my head,” Ellison told the judge, mentioning her ex-boyfriend Sam Bankman-Fried for the first time during the hearing.

SBF previously received a sentence for the FTX collapse. Last March, Bankman-Fried got a 25-year sentence following his conviction on several charges.

“Ignoring that voice in my head and speaking out would have been brave. I’m sorry I wasn’t brave,” Ellison added.

Previous Hearings

It’s not the first time Caroline Ellison’s words in the courtroom have been revealed. In December 2022, she testified  against Bankman-Fried, saying she knew Alameda was given access to a borrowing facility on FTX.com from 2019 through 2022.

“We prepared certain quarterly balance sheets that concealed the extent of Alameda’s borrowing and the billions of dollars in loans that Alameda had made to FTX executives and related parties,” Ellison told U.S. District Judge Ronnie Abrams in Manhattan federal court.
Caroline Ellison's testimony
Caroline Ellison’s testimony in the legal process against Sam Bankman-Fried. l Credit: U.S. Court of New York
“In practical terms, this arrangement permitted Alameda access to an unlimited line of credit without being required to post collateral, without having negative balances, and without being subject to margin calls on FTX.com’s liquidation protocols.”
Her speech was essential in the legal process that brought to the 25-year sentence for her ex-boyfriend and former FTX chief, Bankman-Fried. It also helped her in receiving a minor sentence.
Was this Article helpful? Yes No