Caroline Ellison, former CEO of Alameda Research, was sentenced to 24 months in prison for her involvement in the massive FTX fraud. Despite cooperating with prosecutors to convict Sam Bankman-Fried, her former boss and boyfriend, US District Judge Lewis Kaplan emphasized the gravity of the case, calling it one of the most serious financial frauds ever committed.
Ellison, 29, was a key figure in the collapse of FTX, the crypto exchange that defrauded around $10 billion from customers, investors, and lenders. Judge Kaplan praised her “remarkable” cooperation but stated that her involvement in the fraud couldn’t be excused entirely. Kaplan noted that this case requires deterrence, pointing out the ease with which crypto fraud can occur and how it attracts many perpetrators.
During the sentencing, Ellison expressed deep remorse for her actions, apologizing to the victims. “Not a day goes by that I don’t think about the people I hurt,” she said tearfully. Her family, present in the courtroom, appeared emotional as the sentence was handed down. Ellison will begin her prison term after November 7, followed by three years of probation.
Ellison’s cooperation played a crucial role in securing the conviction of Bankman-Fried, who is serving 25 years in prison for orchestrating the multibillion-dollar fraud. She met with government officials over 20 times, providing valuable evidence, including how she helped prepare false balance sheets to cover up the $10 billion Alameda had borrowed from FTX customers.
The case also sheds light on other key cooperators, including FTX co-founder Gary Wang and former engineering chief Nishad Singh, both of whom are awaiting sentencing later this year. Ellison and Bankman-Fried were ordered to forfeit $11 billion, although it’s unlikely either will repay the sum.
The case also sheds light on other key cooperators, including FTX co-founder Gary Wang and former engineering chief Nishad Singh, both of whom are awaiting sentencing later this year. Ellison and Bankman-Fried were ordered to forfeit $11 billion, although it’s unlikely either will repay the sum.