New York, Wednesday, September 25, 2024-Caroline Ellison, former CEO of Alameda Research, has been sentenced to two years in prison for her involvement in the collapse of cryptocurrency exchange FTX.
The sentencing took place in the United States Southern District of New York on September 24, with Judge Lewis Kaplan presiding over the case.
Ellison, 29, had previously entered a plea deal, admitting to charges of wire fraud and money laundering. Her cooperation with prosecutors, which included testifying against FTX founder Sam Bankman-Fried, played a critical role in his conviction.
Bankman-Fried was sentenced to 25 years in prison for embezzling over $8 billion from FTX customers.
Judge Kaplan acknowledged Ellison’s cooperation but made it clear that her remorse did not absolve her from serving time, noting that such serious cases require accountability.
Ellison has also been ordered to forfeit more than $11 billion in assets, though this amount could increase if further restitution is deemed necessary.
Bankman-Fried’s legal team recently filed a request for a new trial, claiming that federal prosecutors had focused on securing headlines instead of ensuring a fair trial.
Despite his efforts to discredit Ellison by releasing pages of her personal diary, her testimony was key in securing his conviction for orchestrating one of the largest frauds in cryptocurrency history.
