Caroline Ellison sentenced to two years in jail for role in FTX fraud

Caroline Ellison's cooperation was instrumental in the investigation and prosecution of Sam Bankman-Fried.

Caroline Ellison, the former CEO of Alameda Research, has been sentenced to two years in prison for her role in the collapse of the cryptocurrency exchange FTX. She was also ordered to forfeit $11 billion.

Ellison pleaded guilty to two counts of wire fraud and five conspiracy counts in December 2022, agreeing to cooperate with the government. Her testimony was crucial in the trial of FTX co-founder Sam Bankman-Fried, and prosecutors credited her cooperation with ensuring Bankman-Fried's swift arrest and prosecution.

Judge Lewis Kaplan praised Ellison for her "extraordinary" and "timely" cooperation, noting that her testimony was "very incriminating of herself." However, he also emphasized that she was culpable for her role in the fraud.

Ellison's cooperation with the government included assisting in the recovery of customer assets and providing valuable information to investigators. She has already faced significant consequences for her involvement in the scandal, including public shaming and harassment.

The sentencing of Caroline Ellison marks another significant development in the ongoing saga of the FTX collapse. As the investigation continues, it remains to be seen whether other individuals involved in the fraud will face similar consequences.