Former Alameda Research CEO Caroline Ellison Sentenced to Two Years in Prison

A court has sentenced former Alameda Research CEO Caroline Ellison to two years in prison and the forfeiture of $11 billion on charges of fraud and money laundering, according to Bloomberg.

The verdict was mitigated by Ellison’s “remarkable” cooperation in the investigation of former FTX CEO Sam Bankman-Fried, her former boss and partner.

The defendant’s lawyers argued for leniency to avoid imprisonment.

The judge emphasized that the collapse of FTX was one of the “most serious” financial frauds, and cooperation does not grant Ellison a “free pass to freedom.”

“You are a very strong person, Ms. Ellison, in some ways, but not untouchable. Mr. Bankman-Fried was your kryptonite. You were vulnerable, and you were used,” he said.

The judge reminded the court of the spreadsheets provided by the defendant, which played a key role in the prosecution as primary evidence.

According to him, the guidelines suggested 110 years in prison, as in the case of SBF.

During the hearings, Ellison admitted her involvement in the FTX fraud and apologized to creditors, investors, and victims who lost money due to her actions, as well as to family and friends and “everyone she deceived.”

The former CEO of Alameda Research may serve her sentence in a general regime prison.

Following the sentencing of Ellison, other figures in the case now await their verdicts — FTX co-founder and CTO Gary Wang, as well as the exchange’s head of engineering Nishad Singh. Bloomberg predicted that they will also receive prison terms.

In November 2023, co-founder and former CEO of the platform Sam Bankman-Fried was found guilty on all charges. In March 2024, he was sentenced to 25 years in prison. SBF’s lawyers appealed the court’s decision.

Earlier, former head of the Bahamian division of FTX Ryan Salame was granted a delay in the start of his prison sentence until October 13, 2024, due to a dog bite.