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Caroline Ellison, the former co-Chief Executive (CEO) of Alameda Research, has been sentenced to two years in prison for her role in the approximately $8 billion stolen from FTX customers.
The 29-year-old pleaded guilty to seven counts of fraud and conspiracy in the lead-up to former FTX chief Sam Bankman-Fried’s criminal trial. Despite facing a maximum 110 years, her lawyers have argued that Ellison’s key testimony for the prosecution should have resulted in no prison time at all.
Ellison’s prison sentence is far less than her ex-flame Bankman-Fried, who received 25 years behind bars. US District Judge Lewis Kaplan explained that Ellison has been particularly cooperative, stating, “I’ve seen a lot of cooperators in 30 years. I’ve never seen one quite like Ms. Ellison,” though he made sure to acknowledge her role in the fraud.
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This level of cooperation was acknowledged by the prosecutors, who wrote in their sentencing submission that “the Government cannot think of another cooperating witness in recent history who has received a greater level of attention and harassment” and that despite this fact, she “steadfastly remained candid and dedicated to telling the truth—as embarrassing as it often was for her—and in assisting with bringing the most culpable party to justice.”
The former Alameda chief has also been cooperating with the ongoing bankruptcy, providing significant support to its recovery efforts.
Two FTX executives, Gary Wang and Nishad Singh, are also scheduled to be sentenced later this year after pleading guilty to related crimes. Additionally, Ryan Salame, another FTX and Alameda Research executive, will be reporting to prison next month for his over seven-year long sentence.