**Caroline Ellison Sentenced to Two Years in Prison for Role in FTX Fraud**
Disgraced Alameda Research CEO Caroline Ellison ( Image: Youtube)
Caroline Ellison, former top executive in Sam Bankman-Fried’s FTX cryptocurrency empire, has been sentenced to two years in prison for her involvement in the multi-billion-dollar fraud. Ellison, 29, had previously pleaded guilty and testified against her former colleague and boyfriend, Sam Bankman-Fried, in one of the largest financial fraud cases in U.S. history.
Sam Bankman-Fried is facing a long prison sentence too ( Image: Anadolu Agency via Getty Images)
Ellison, who ran Alameda Research, a crypto hedge fund tied to FTX, expressed deep remorse during her sentencing. “I’m deeply ashamed of what I’ve done,” she said through tears, apologizing to those affected by the scheme. Her testimony was pivotal in convicting Bankman-Fried, who is now serving a 25-year prison sentence.
Despite her cooperation with federal investigators and assistance in exposing the full extent of the fraud, U.S. District Judge Lewis A. Kaplan ruled that a prison sentence was necessary. He described Ellison’s involvement as part of an unprecedented financial scandal. While praising her “very substantial” cooperation, Kaplan emphasized that cooperation alone could not absolve her from accountability.
Caroline Ellison once made headlines over her polyamorous relationship with fraudster Bankman-Fried ( Image: carolinecapital/Twitter)
Ellison’s defense attorneys requested leniency, citing her emotional and professional manipulation by Bankman-Fried and her full cooperation with investigators. They also highlighted her efforts to rebuild her life, including charity work, writing, and reconnecting with old friends.
The fraud involved billions in misappropriated client funds, unlawful political contributions, and extravagant personal spending. Ellison’s role, as head of Alameda Research, placed her at the center of the scandal, although she has since admitted her wrongdoing and worked with authorities to bring Bankman-Fried and others to justice.
