Caroline Ellison Sentenced to Two Years for Role in FTX-Alameda Fraud
Caroline Ellison, the former co-CEO of Alameda Research, has been sentenced to two years in prison for her involvement in the $8 billion fraud involving the cryptocurrency exchange FTX. At 29 years old, Ellison faced seven counts of fraud and conspiracy, but her cooperation with prosecutors played a key role in reducing her potential sentence from a possible 110 years.
Her testimony was pivotal in the criminal trial of former FTX CEO Sam Bankman-Fried, who received a far stronger 25-year sentence. US District Judge Lewis Kaplan highlighted Ellison's exceptional cooperation, remarking, “I’ve never seen one quite like Ms. Ellison” during his three decades on the bench.
Ellison has been convicted on all seven counts of fraud and conspiracy
Despite the gravity of her crimes, prosecutors acknowledged Ellison’s resilience in the face of intense public scrutiny. In a statement, they emphasized how she remained "candid and dedicated to telling the truth" throughout the investigation. Her contributions have been significant not only in Bankman-Fried’s conviction but also in assisting with the ongoing bankruptcy and recovery efforts at FTX.
Other key figures in the FTX scandal, including executives Gary Wang and Nishad Singh, are set to be sentenced later this year. Ryan Salame, another former Alameda executive, is expected to begin serving a seven-year sentence next month.
Ellison’s cooperation may have granted her leniency, but her two-year sentence reflects the seriousness of the fraud that devastated thousands of FTX customers.
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