Alameda Research former CEO, Caroline Ellison gets 2 Years sentence for FTX fraud.
Caroline Ellison, the former CEO of Alameda Research, has been sentenced to 24 months in prison for her role in the massive FTX fraud. While she cooperated with prosecutors to secure the conviction of Sam Bankman-Fried, her former boss and boyfriend, US District Judge Lewis Kaplan underscored the seriousness of the case, describing it as one of the largest financial frauds in history.
At age 29, Ellison played a central role in the downfall of FTX, the cryptocurrency exchange that deceived customers, investors, and lenders out of approximately $10 billion. Though Judge Kaplan acknowledged her significant cooperation, he emphasized that her involvement in the scheme warranted punishment, given the widespread damage caused by such fraud in the crypto space.
During her sentencing, Ellison expressed deep regret for her actions, apologizing to the victims. She tearfully stated, “Not a day goes by that I don’t think about the people I hurt.” Her family, present in the courtroom, appeared emotional as the sentence was delivered. Ellison’s sentence includes a prison term starting after November 7, followed by three years of probation.
Her cooperation was instrumental in convicting Bankman-Fried, who is now serving 25 years in prison for orchestrating the fraudulent scheme. Ellison provided key evidence, including how she helped falsify balance sheets to conceal Alameda’s $10 billion borrowing from FTX customers.
The case also highlights the roles of other key figures, such as FTX co-founder Gary Wang and former engineering chief Nishad Singh, who are also awaiting sentencing. Both Ellison and Bankman-Fried were ordered to forfeit $11 billion, though it’s unlikely they will be able to repay the full amount.
