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Former Alameda CEO Caroline Ellison has been sentenced to two years in prison for her involvement in the collapse of FTX and has been told to forfeit $11B.
What's the Scoop?
- Guilty Plea: Ellison pleaded guilty in December 2022 to multiple fraud and conspiracy charges, including wire fraud and money laundering.
- Role in FTX Collapse: Ellison admitted to following Sam Bankman-Fried’s directives, leading to FTX’s failure and billions in consumer losses.
- Cooperation with Government: Her cooperation with the prosecution, including testifying against Bankman-Fried, influenced her sentencing.
Bankless Take:
Caroline Ellison’s two-year sentence starkly contrasts SBF’s 25 years, speaking to the power of her cooperation, which the judge said was unlike any he’d seen in 30 years. Still, with $11B to forfeit and the question looming of whether or not she even has this money, the financial consequences of her actions remain heavy, signaling that while cooperating likely reduced jail time, she's still on the hook for her role in the saga.
BREAKING: Caroline Ellison of FTX was sentenced to 24 months of prison.
— unusual_whales (@unusual_whales) September 24, 2024
The Judge commented that “I’ve seen a lot of cooperators in 30 years. I’ve never seen one quite like Ms. Ellison.”
