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Former Alameda CEO Caroline Ellison has been sentenced to 24 months in prison for her role in the collapse of the former crypto exchange FTX.
Bloomberg first reported the news.
The prison sentence is far below the maximum 110 years her charges carry. Her “extraordinary cooperation” with prosecutors during and ahead of FTX founder Sam Bankman-Fried’s trial warrants no jail time, her attorneys said.
Ellison’s role in the crimes was a result of her “warped” moral sense due to Bankman-Fried’s influence, her team added.
Read more: Former FTX execs, government witnesses to be sentenced this fall
“Bankman-Fried convinced her to stay, telling her she was essential to the survival of the business, and that he loved her,” her attorneys wrote in their sentencing memo.
At the same time, Bankman-Fried was “perversely demonstrating that he considered her not good enough to be seen in public with him at high-profile events,” the memo added.
Ahead of the sentencing, bettors on Polymarket speculated how much time the former Alameda executive would receive. The $930,000 market was leaning towards no prison time earlier Tuesday.
In 2022, Ellison pleaded guilty to two counts of wire fraud, two counts of conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering.
She emerged as a star witness during Bankman-Fried’s trial, telling the jury that Alameda, at Bankman-Fried’s direction, borrowed from FTX for “whatever we needed.”
Bankman-Fried was sentenced to 25 years in prison after being convicted of two counts of wire fraud, two counts of conspiracy to commit wire fraud, one count of conspiracy to commit securities fraud, one count of conspiracy to commit commodities fraud and one count of conspiracy to commit money laundering.
He has since appealed the conviction, alleging that the presiding judge unfairly prevented the defense from presenting certain evidence to the jury.
Katherine Ross contributed reporting.
This is a developing story.
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