Caroline Ellison sentenced to 24 months in prison for her role in FTX collapse

Caroline Ellison, the erstwhile main enforcement of Alameda Research and ex-girlfriend of disgraced crypto entrepreneur Sam Bankman-Fried (SBF), received a two-year situation condemnation connected Sept. 24 for her relation successful the illness of FTX.

The court’s ruling comes contempt Ellison’s petition for nary situation clip connected the ground that her grounds played a important portion successful securing SBF’s conviction, which resulted successful a 25-year situation word for aggregate fraud-related offenses.

Request for nary situation time

Ellison’s ineligible squad sought to debar situation clip by arguing for a condemnation of clip served, emphasizing her important practice with national authorities pursuing the illness of FTX.

The lawyers highlighted her voluntary instrumentality to the US from the Bahamas and her captious assistance successful knowing the fiscal mismanagement astatine some FTX and Alameda Research, which helped successful plus recovery.

In a tribunal papers submitted connected Sept. 10, John Ray, the CEO of FTX who oversees its bankruptcy proceedings, acknowledged the value of Ellison’s practice successful recovering important assets.

Ellison’s lawyers besides emphasized her antecedently cleanable grounds and provided quality testimonials attesting to her integrity. They further contended that SBF’s manipulative behaviour skewed her motivation judgment, starring her to partake successful unlawful activities portion feeling trapped successful a analyzable idiosyncratic and nonrecreational dynamic with him.

Plea deal

Ellison accepted a plea woody successful December 2022 aft FTX filed for bankruptcy. Prosecutors charged her with conspiracy and fiscal fraud, and she testified for astir 3 days during SBF’s proceedings successful November, revealing extended details astir the operations of some FTX and Alameda Research.

Prosecutors described her grounds arsenic the “cornerstone” of the case, which importantly contributed to the jury’s blameworthy verdict against SBF connected each 7 counts.

Before its melodramatic collapse, FTX stood arsenic 1 of the largest cryptocurrency exchanges globally, recognized for assertive lobbying successful Washington and salient advertising, including a Super Bowl spot. SBF and different executives look superior allegations of diverting lawsuit funds for idiosyncratic use, high-risk investments, and extravagant spending.

Ellison’s sentencing forms portion of a broader bid of ineligible actions against erstwhile FTX executives. In May, a justice sentenced Ryan Salame to 7 and a fractional years successful prison, portion chap executives Nishad Singh and Gary Wang await sentencing successful the coming months.

The station Caroline Ellison sentenced to 24 months successful situation for her relation successful FTX collapse appeared archetypal connected CryptoSlate.