Former Alameda CEO Caroline Ellison Sentenced to Two Years for Role in FTX Collapse

Caroline Ellison, the former CEO of Alameda Research, has been sentenced to two years in prison for her involvement in the downfall of the cryptocurrency exchange FTX.

The 29-year-old appeared before Judge Lewis Kaplan at the United States Southern District of New York on September 24, where she faced charges of wire fraud and money laundering.

Judge Praises, But Denies Leniency

Judge Kaplan acknowledged Ellison’s "remarkable" cooperation with prosecutors but emphasised that her remorse and cooperation could not serve as a "get out of jail free card" given the severity of the case.

Despite her plea deal, which involved assisting prosecutors, the judge handed down the prison sentence, reflecting the gravity of her actions.

Related reading：Caroline Ellison, caught in FTX scandal, may be spared jail sentence

Ellison’s Relationship with Bankman-Fried

Ellison’s personal relationship with Sam Bankman-Fried, the founder of FTX, added another layer of complexity to the case. Bankman-Fried was recently sentenced to 25 years in prison for embezzling over $8 billion from FTX customers.

Ellison’s testimony was instrumental in securing his conviction, as she provided critical insights into the fraudulent activities that led to the collapse of the exchange.

Asset Forfeiture and Future Restitution

In addition to her prison sentence, Ellison has been ordered to forfeit assets valued at more than $11 billion. The exact amount could rise if further restitution is required in the future.

Her cooperation was a key component in the broader investigation, which targeted high-level figures within the FTX scandal.

Ongoing Legal Battles

While Ellison has been sentenced, the legal saga continues. Bankman-Fried’s defence team has sought a new trial, claiming that he was denied a fair hearing.

His lawyers argue that federal prosecutors were more concerned with securing quick headlines than providing a just legal process.

Earlier this month, they submitted a request for a retrial, which is currently under review.