Caroline Ellison, the former chief executive of Alameda Research and ex-girlfriend of disgraced crypto entrepreneur Sam Bankman-Fried (SBF), has been sentenced to two years in prison and ordered to forfeit $11 billion for her involvement in the collapse of FTX. The court ruling on September 24th came despite Ellison’s request for leniency, citing her cooperation in securing SBF’s conviction.
Ellison’s legal team had argued for a sentence of time served, highlighting her voluntary return to the US from the Bahamas and her assistance in understanding the financial mismanagement at FTX and Alameda Research. John Ray, CEO of FTX, acknowledged the importance of Ellison’s cooperation in asset recovery in a court document submitted on September 10th. Her lawyers also emphasized her clean record and provided character testimonials attesting to her integrity, attributing her involvement in unlawful activities to SBF’s manipulative behavior.
Ellison had accepted a plea deal in December 2022 after FTX filed for bankruptcy. Prosecutors charged her with conspiracy and financial fraud, and her testimony during SBF’s trial in November was described as crucial to the case. FTX, once a prominent cryptocurrency exchange known for aggressive lobbying and advertising, collapsed due to allegations of misuse of customer funds and extravagant spending by executives.
Ellison’s sentencing is part of a larger legal action against former FTX executives. In May, Ryan Salame was sentenced to seven and a half years in prison, while Nishad Singh and Gary Wang are awaiting sentencing. The fallout from FTX’s collapse continues to unfold, highlighting the consequences of fraudulent activities in the cryptocurrency industry.
This article was rewritten based on the original content provided in a