Caroline Ellison, the former CEO of Alameda Research, reported to a federal prison in Connecticut on November 7 to serve a two-year sentence for her role in fraudulent activities related to the cryptocurrency exchange FTX.
Caroline Ellison Imprisoned for FTX Scheme
Ellison, whose testimony was pivotal in the case against FTX founder Sam Bankman-Fried, was sentenced in September to two years in prison and ordered to forfeit $11 billion. She pleaded guilty to conspiracy and financial fraud charges that led to FTX's bankruptcy in 2022.
Ellison's Cooperation Leads to Bankman-Fried's Conviction
As part of a deal with prosecutors, Ellison provided testimony critical to indicting Bankman-Fried. Her cooperation was instrumental in the proceedings. Despite a recommended supervised release for Ellison, Judge Lewis Kaplan ruled for a stringent penalty to deter future financial fraud.
Ellison's Role in FTX Case
Ellison is now the third individual in the FTX case to be imprisoned. Her involvement at the firm included a relationship with Bankman-Fried and the misappropriation of billions in client funds.
Ellison's case and FTX's collapse remain among the largest financial frauds in U.S. history, underscoring the need for legal compliance in the crypto industry.
