The 29-year-old former girlfriend of FTX founder Sam Bankman Freed Sentenced She was sentenced to two years in prison on Tuesday for her role in a massive cryptocurrency Ponzi scheme.
“I've seen a lot of collaborators over the last 30 years, but I've never seen anyone like Mr. Ellison.”
Caroline Ellison was the CEO of Alameda Research, a private hedge fund into which Bankman Freed fraudulently funneled funds from major cryptocurrency exchange FTX. In December 2022, Ellison pleaded guilty to seven charges related to the scheme, including commodities fraud conspiracy and securities fraud conspiracy.
She had faced up to 110 years in prison on seven charges, but a New York judge reduced the sentence, citing her “extraordinary” cooperation with the government's case against her ex-boyfriend and other FTX executives.
“She cooperated and he denied everything,” Judge Lewis Kaplan said. “I've seen a lot of cooperators over the last 30 years, but I've never seen anyone like Ms. Ellison.”
Bankman Freed was previously ordered by Kaplan to turn over $11 billion to the government to compensate victims of the FTX scandal, for which he was convicted on seven counts, including wire fraud and money laundering conspiracy.
Kaplan also noted that Bankman-Freed continues to maintain her innocence, while Ellison has pleaded guilty and expressed remorse.
“You are genuinely remorseful,” the judge continued. “He regrets the bet went wrong and he really regrets getting caught.”
Ellison took to the podium before the sentence was handed down to apologize for his actions.
“Above all, I want to apologize to the victims,” Ellison said through tears. “Not a day goes by that I don't think about the people I hurt.”
A year after his conviction, Bankman Freed appealed his decision, claiming he had received an unfair trial. Sentenced Up to 25 years in prison.
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