Caroline Ellison, the former co-CEO of Alameda Research, has been sentenced to two years in prison for her role in the massive FTX fraud.
Details of Sentencing
Caroline Ellison pleaded guilty to seven counts of fraud and conspiracy linked to the misappropriation of around $8 billion in customer funds from the defunct exchange.
Court Testimony
During her ex-boyfriend Sam Bankman-Fried’s trial, Ellison testified that she and him conspired to send false balance sheets to lenders and investors. She noted: "When I started working at Alameda, I don’t think I would have believed it if you told me that a few years later I would be sending false balance sheets."
Investigation Results
Judge Lewis Kaplan handled Ellison’s sentencing. Prosecutors had recommended leniency because of her “extraordinary cooperation” in the investigation. They emphasized that her testimony against SBF and her acceptance of responsibility were critical in the case. Her defense team even argued for no prison time, stressing her importance to the prosecution’s case.
FTX customers lost around $8 billion. Investors were defrauded of $1.7 billion, and lenders were tricked out of $1.3 billion. SBF was sentenced to 25 years in prison earlier this year and ordered to forfeit $11 billion to compensate victims of the fraud. Gary Wang and Nishad Singh, both awaiting sentencing, will likely be evaluated based on their cooperation compared to Ellison’s.
Comments