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.
This comes after she pleaded guilty to seven counts of fraud and conspiracy linked to the misappropriation of around $8 billion in customer funds from the defunct exchange.
Details of sentencing
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 said:
“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.”
Judge Lewis Kaplan handled Ellison’s sentencing. Prosecutors had recommended leniency because of her “extraordinary cooperation” in the investigation.
They said 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 this entire time.
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. He was also ordered to forfeit $11 billion, which is intended to compensate victims of the fraud. His defense has filed an appeal.
Gary Wang and Nishad Singh, both of whom are awaiting sentencing, will likely see their cooperation levels compared to Ellison’s.
