- Caroline Ellison was sentenced to 24 months in prison for her role in the FTX fraud involving $10 billion.
- Ellison cooperated with prosecutors and testified against FTX founder Sam Bankman-Fried in his fraud trial.
- Ellison must forfeit $11 billion and is eligible for early release due to good behavior during her two-year sentence.
Caroline Ellison, the ex-CEO of Alameda Research, received a 24-month prison sentence for her involvement in the FTX fraud. Ellison played a crucial role in the scandal that led to the downfall of FTX.
She confessed to doctoring paperwork to conceal Alameda’s embezzlement of over $10 billion in customer funds. Even though she collaborated with prosecutors, Judge Kaplan emphasized the gravity of the crime and mandated a prison term.
Ellison Key Testimony Against Sam Bankman-Fried
Caroline collaborated extensively, even providing testimony against FTX’s founder, Sam Bankman-Fried. Bankman-Fried was found guilty of committing fraud and multiple other charges last year, leading to his current imprisonment for a 25-year period. However, he has appealed the sentencing, citing the bias of the judge
Ellison’s testimony played a crucial role in exposing the mishandling of FTX funds. Even though she cooperated, Judge Kaplan pointed out that she was still involved in one of the biggest financial scams in American history.
Judge Kaplan’s Ruling
Prosecutors had sought leniency for Ellison, citing her full cooperation. Her lawyers argued against a prison sentence, but the magnitude of the fraud influenced the final decision.
Ellison, who pleaded guilty to seven counts in 2022, expressed deep regret for her actions. She acknowledged the immense harm caused and took full responsibility for her role in the scandal.
Prison Term and Financial Penalty
Ellison will start serving her sentence on November 7. She is expected to be held in a minimum-security institution. Her cooperation and potential for good behavior may qualify her for early release before the end of her two-year term. She also has to forfeit $11 billion in addition to the sentence.
After the FTX collapse, Ellison’s sentencing is a significant event in the ongoing aftermath. It acts as a warning about the severe repercussions of financial fraud, even for those who fully comply with authorities.
The post Caroline Ellison Sentenced to Two Years for Role in FTX Fraud Despite Cooperation with Prosecutors appeared first on Crypto News Land.
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