FTX's former CEO, Sam Bankman-Fried, is about to get a whole lot smaller since the heady days of working and living with a group of coworkers.
The plea deals that Ellison, who was the CEO of Bankman-Fried's trading firm Alameda Research, and Gary Wang struck with federal prosecutors in New York freed them each on $250,000 bonds.
Bankman-Fried, who left a New York federal court on Thursday on a $250 million bail and wearing an ankle monitor, did not involve the same type of deal. While the government builds its case against Bankman- Fried, Ellison may still be tethered to prosecutors and estranged from former circles.
Ellison's deal restricts her travel to the continental US and forbids her from talking about the events surrounding FTX without prosecutors' permission.
Insider has learned that attorneys for Ellison and others in the web of FTX and Alameda have advised their clients against communicating with one another.
Nancy De Podesta, who was previously a federal prosecutor in Chicago, said that her day-to-day has changed dramatically because of the charges.
She's free to go about her life, but with certain restrictions. Her former colleagues will shy away from her because of her cooperation.
On Thursday, an attorney for Ellison didn't reply to questions.
Ellison pleaded guilty to seven charges in a document called an information. According to a civil complaint filed by the US Securities and Exchange Commission, Ellison and Wang were active in Bankman- Fried's alleged scheme to use FTX customer funds to bring money into his separate firm Alameda.
The criminal counts against Ellison are similar to those against Bankman- Fried. Hers weren't the result of a grand jury indictment as her cooperation and plea relieved prosecutors of that step.
If the sentences for each count were to be stacked up, Ellison's maximum penalty would be over 100 years. Depending on how useful prosecutors find her help and the judge's decision, she could be sentenced to no jail time at all.
If they were to go to trial, it would be nothing close to what they would be exposed to. Cooperators can expect certain types of sentences.
There's a lot of work to be done. Bankman-Fried is expected to plead guilty in the US on January 3.
Ellison and Wang are cooperators. They won't be sentenced until after prosecutors have more information about Bankman-Fried's case.
Ellison and Wang would continue to work with investigators.
Even though we might not be seeing her in court any time soon, prosecutors are likely to be working with her in order to help them.
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