Additional Coverage:
- FTX fraudster Caroline Ellison sentenced to 2 years in prison, ordered to forfeit $11 billion (cnbc.com)
FTX Co-Founder Gets Prison Time
Caroline Ellison, a former FTX executive and star witness against Sam Bankman-Fried, has been sentenced to two years in prison for her role in the crypto exchange’s collapse.
Despite her cooperation, Judge Lewis Kaplan said her crimes required a prison sentence as a deterrent. Ellison’s testimony helped convict Bankman-Fried, who received 25 years in prison.
Ellison admitted her guilt and expressed remorse, but the judge emphasized the severity of the fraud, which is considered one of the largest in US history.
Ellison, who operated the Alameda Research hedge fund, forfeited $11 billion in the case. She was praised for her truthfulness but acknowledged her role in the scheme.
Two other former FTX executives, Gary Wang and Nishad Singh, are also scheduled for sentencing after pleading guilty. The plea deals, which included cooperation, resulted in more lenient sentences compared to Bankman-Fried, who chose to stand trial.