Caroline Ellison, the former CEO of Alameda Research and a key witness in the FTX fraud case, was sentenced to two years in prison. This comes after her ex-partner, Sam Bankman-Fried (SBF), was found guilty and sentenced to 25 years.
A Harsh Sentence for Cooperation
Ellison’s sentence was harsher than what the probation department recommended. They suggested three years of supervised release without jail time. Her lawyers even asked for no prison time at all, highlighting her cooperation with authorities.
Judge Lewis Kaplan, who presided over the case, acknowledged Ellison’s cooperation but emphasized the need for a strong sentence to deter future fraudsters. He called the FTX fraud “probably the greatest financial fraud perpetrated in the history of the US.”
Ellison’s Role in the Fraud
Ellison’s company, Alameda Research, received a large portion of the $8 billion stolen from FTX customers. This money was allegedly used for Alameda’s trading and other ventures.
Remorse and Apology
Ellison expressed remorse for her actions in court, saying she was “deeply ashamed” and apologized to those affected. She admitted to staying in a “toxic environment” with Bankman-Fried, which she now regrets.
What’s Next?
Ellison will remain free on bail until November 7th, when she’s scheduled to surrender to prison.
Two other former FTX executives, Gary Wang and Nishad Singh, are awaiting sentencing later this year. Their cooperation with authorities might influence their sentences.
SBF has appealed his conviction, claiming bias from Judge Kaplan.
