Caroline Ellison was sentenced to two years in federal prison on Tuesday for her involvement in the FTX fraud scandal.
The 30-year-old was also ordered to forfeit $11 billion, which she earned through her association with the now-collapsed cryptocurrency exchange.
Ellisonâs Cooperation
Judge Lewis A. Kaplan, who presided over the case, acknowledged the former Alameda Research CEOâs cooperation with the prosecution, âIâve never seen a cooperator quite like Miss Ellison,â he remarked. Despite this, Kaplan emphasized that the scale of the FTX fraud meant she could not avoid prison time. âCooperation isnât a âget out of jail freeâ card in a case of this magnitude,â he added.
Her sentence includes three years of supervised release upon completing her prison term, which she could serve at a minimum-security facility near Boston. Due to the federal nature of her crime, she has to serve at least 75% of her sentence before being eligible for parole.
Prosecutors described Ellisonâs testimony as crucial to Bankman-Friedâs conviction, calling it the âcornerstoneâ of the case in a memo before Tuesdayâs hearing. Assistant U.S. Attorney Danielle Sassoon also highlighted this, contrasting her remorse with his lack of accountability.
Her attorneys also argued that her âextraordinary cooperationâ and low risk of reoffending should result in a more lenient sentence. Her legal team and probation department had previously recommended time served plus three years probation.
Her lawyer, Anjan Sahni, said Ellison had been manipulated by SBF, with whom she had a past romantic relationship, and that she had since ârecovered her moral compass.â Judge Kaplan added, âYou were vulnerable, and you were exploited.â
SBFâs Appeal for New Trial
Meanwhile, the FTXÂ founder is seeking a new trial with a different judge, claiming bias in his previous case. His legal team has filed an appeal, arguing that Judge Kaplan, who presided over the original trial, showed a prejudicial attitude that they believe impacted the verdict.
Additionally, a group of doctors submitted a brief supporting his appeal, citing his neurodivergent conditions, including autism spectrum disorder (ASD) and ADHD. They argued that his conditions, combined with a lack of access to necessary medication during the trial, affected his ability to communicate effectively and contributed to his conviction.
Before being sentenced, Ellison was remorseful, apologizing to FTXâs former customers, her family, and colleagues.âThe human brain is bad at comprehending big numbers,â she said. âI canât even begin to imagine the pain Iâve caused.â
She concluded, âIf you had told me back in 2018 that I would end up pleading guilty to fraud, I would have told you you were crazy⊠At each stage of the process, it became harder and harder to extricate myselfâŠIâm sorry I wasnât brave.â
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