Caroline Ellison, the former CEO of Alameda Research, has been sentenced to 2 years in prison by Judge Lewis Kaplan of the Southern District of New York. Her involvement in the collapse of the FTX exchange resulted in billions of dollars in customer losses.
Ellison, also the ex-girlfriend of Sam Bankman-Fried (SBF), the former CEO of FTX, received a significantly lighter sentence than SBF, who was sentenced to 25 years. Ellison’s lower punishment is due to her cooperation with authorities and guilty plea to fraud and money laundering charges in December 2022.
During SBF’s trial in March, Ellison testified that she acted on his instructions. Despite pleading guilty, she will serve her time in a minimum-security facility. Judge Kaplan noted that Ellison showed genuine remorse, unlike SBF. “Although she was exploited in her relationship with Sam, she will be held accountable for her role in the fraud,” said Kaplan, who emphasized that despite her cooperation, an appropriate sentence was necessary to deter future misconduct.
Ellison expressed regret for her actions, stating, “Not a day goes by that I don’t think about all the people I hurt.” She is also involved in efforts to address the $11 billion loss caused by FTX’s collapse.
Other former FTX executives are also facing legal repercussions. CTO Nishad Singh and co-founder Gary Wang are expected to be sentenced later this year.
Meanwhile, the FTT token, associated with the FTX exchange, has remained stable, trading at $1.41.
Related news: FTX CEO Sam Bankman-Fried Appeals 25-Year Sentence, Requests New Trial
