Caroline Ellison, former CEO of Alameda Research and a key figure in the FTX cryptocurrency scandal, has been sentenced to two years in prison for her involvement in one of the largest financial fraud cases in history. Ellison, who was also the former girlfriend of FTX founder Sam Bankman-Fried, played a crucial role in the trial that ultimately led to Bankman-Fried’s conviction. Ellison faced a potential sentence of up to 110 years after pleading guilty to seven charges, including fraud.
However, her sentence was significantly reduced due to her cooperation with prosecutors. During the trial, Ellison provided critical testimony against Bankman-Fried, detailing how he misused customer funds to finance risky ventures through FTX’s sister company, Alameda Research. Her defence team had argued against any prison time, but the Manhattan District Attorney’s Office left the final sentencing decision to Judge Lewis Kaplan, who acknowledged her cooperation when determining her sentence.
Bankman-Fried, once a celebrated figure in the cryptocurrency world, was sentenced to 25 years in prison in March for his role in the collapse of FTX. The trial revealed that FTX, which had rapidly grown into the world’s second-largest cryptocurrency exchange after its launch in 2019, was involved in highly unethical practices. The company misused billions of dollars in customer deposits to engage in risky trades through Alameda Research, purchase luxury real estate, and fund political contrib.
