Caroline Ellison Sentenced to Two Years for Role in FTX Collapse
Former Alameda CEO Caroline Ellison will serve two years in prison for her involvement in the collapse of FTX, following her cooperation with authorities.
Key points:
- Two-year sentence: Ellison received two years for her role in FTX’s downfall.
- Pled guilty in 2022: She admitted to conspiracy and fraud charges.
- Forfeiting $11 billion: She must give up $11 billion related to the fraud.
- Testified against SBF: Ellison helped prosecutors by testifying during Sam Bankman-Fried’s trial.
- Light sentence due to cooperation: Her cooperation earned her a reduced sentence.
Ellison’s Role in the FTX Scandal:
Caroline Ellison, former co-CEO of Alameda Research, will serve two years in prison for her part in the FTX collapse, which led to billions in losses for consumers.
Ellison, who once dated FTX founder Sam Bankman-Fried, pled guilty in December 2022 to charges of wire fraud, commodities fraud, securities fraud, and money laundering.
As Alameda’s CEO, her close ties to FTX put her at the center of the scandal.
Ellison played a crucial role in the investigation by cooperating with authorities and testifying against Bankman-Fried.
She admitted that he directed her to carry out the fraudulent actions that contributed to the company’s collapse.
Alameda accessed customer funds through an unlimited credit line at FTX, which she manipulated under Bankman-Fried’s guidance.
Read more: FTX and CFTC Reach Landmark $12.7 Billion Settlement
Besides her prison sentence, Ellison must forfeit $11 billion. Her cooperation led to a lighter sentence than expected.
The federal Probation Department recommended no jail time, but the court ultimately gave her two years to ensure accountability.
Ellison’s testimony helped secure a 25-year sentence for Sam Bankman-Fried earlier this year.
