Caroline Ellison, former crypto executive and ex-partner of FTX founder Sam Bankman-Fried, recently received a two-year prison sentence at a Manhattan federal court for her role in the FTX bankruptcy saga. As the former CEO of Alameda Research, the trading arm of FTX, Ellison came under scrutiny when FTX, once valued at $32bn, collapsed after allegations of fraudulent accounting to prop up Alameda were uncovered. Investigations found both FTX and the hedge fund responsible, having used billions in customer funds for risky trades and excessive personal expenses.
Ellison, who was facing charges that could have amounted to 110 years in prison, was given a significantly lighter sentence due to her exemplary cooperation in the case against Bankman-Fried. Her honesty and consistency in her testimonies set her apart from others involved. However, Judge Lewis Kaplan stressed that despite her cooperation, the gravity of the crimes warranted jail time, and Ellison was therefore handed a compulsory 24-month sentence and ordered to forfeit about $11bn in assets.
Ellison’s guilty plea to seven charges, including wire fraud and money laundering, pivotal role as a witness, and admission to her part in misleading customers, led to one of the most climactic moments in the trial, and cast most of the blame on Bankman-Fried. Ellison also attracted significant public and media attention, including her relationship with Bankman-Fried and personal writings, used for tabloid coverage and Internet mockery after the FTX blow-up.