Former Alameda CEO Caroline Ellison Begins Two-Year Prison Term in FTX Fraud Case
Caroline Ellison, the former CEO of Alameda Research and key witness against Sam Bankman-Fried, reported to the Federal Correctional Institution in Danbury, Connecticut on Thursday to begin serving her two-year prison sentence for her role in the FTX cryptocurrency exchange collapse.
The 30-year-old executive, who played a pivotal role in exposing the $8 billion fraud that brought down the once $32 billion crypto empire, was sentenced in September after pleading guilty to seven criminal charges including wire fraud, securities fraud, and money laundering.
Despite prosecutors and the federal Probation Department recommending no prison time due to her extensive cooperation, Judge Lewis Kaplan determined that incarceration was necessary to deter future financial crimes. Along with the prison term, Ellison was ordered to forfeit $11 billion.
During her emotional sentencing hearing, Ellison expressed deep remorse for her actions, particularly her failure to stand up against the fraudulent practices at FTX and Alameda Research, where she oversaw operations while briefly dating Bankman-Fried. The hedge fund received billions in misappropriated FTX customer funds under their leadership.
Her testimony proved crucial in securing the conviction of Bankman-Fried, who was sentenced to 25 years in prison this March. Other former FTX executives have also faced consequences, with Ryan Salame receiving a 7.5-year sentence and Nishad Singh getting three years of supervised release. FTX co-founder Gary Wang is scheduled for sentencing on November 20.
The low-security facility where Ellison will serve her term currently houses over 1,200 inmates and accepts both male and female prisoners.