- Former Alameda Research CEO Caroline Ellison sentenced to two years in prison.
- Ellison will also give up $11 billion.
Former Alameda Research CEO Caroline Ellison was sentenced to 24 months in prison.
Ellison, who pleaded guilty to charges related to the collapse of the cryptocurrency exchange FTX and testified against Sam Bankman-Fried, must, however, give up all profits he made from FTX. According to a court ruling on September 24, Ellison must give up $11 billion.
You have to give up all your profits from FTX for 24 months, which is honestly more than Caroline thought she would get after receiving the judges’ praise. pic.twitter.com/hbrWtIUOIp
— James Seyfert (@JSeyff) September 24, 2024
Despite the two-year sentence, Judge Lewis Kaplan praised the former Alameda CEO’s cooperation.
“I’ve seen a lot of collaborators over the past 30 years. I’ve never seen anyone like Mr. Ellison,” the judge said.
Bloomberg also reported that Ellison held her accountable but also acknowledged that she was “vulnerable” and exploited.
“Mr. Ellison, you are a very strong person in some ways, but you are not inviolable,” Judge Kaplan said.
FTX founder and CEO Sam Bankman-Fried was sentenced to 25 years in prison earlier this year. SBF was found guilty on all charges, including fraud. Bankman-Fried was also accused of leaking Ellison’s diaries before he was sent to prison.