Caroline Ellison sentenced to 24 months in prison for her role in FTX collapse Caroline Ellison sentenced to 24 months in prison for her role in FTX collapse
The sentence comes despite Ellison's request for no prison time on the basis of her cooperation with authorities.
2 min read
Updated: Sep. 24, 2024 at 10:45 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Caroline Ellison, the former chief executive of Alameda Research and ex-girlfriend of disgraced crypto entrepreneur Sam Bankman-Fried (SBF), received a two-year prison sentence and was ordered to forfeit $11 billion for her role in the collapse of FTX.
The Sept. 24 court ruling comes despite Ellison’s request for no prison time on the basis that her testimony played a crucial part in securing SBF’s conviction, which resulted in a 25-year prison term for multiple fraud-related offenses.
Request for no prison time
Ellison’s legal team sought to avoid prison time by arguing for a sentence of time served, emphasizing her substantial cooperation with federal authorities following the collapse of FTX.
The lawyers highlighted her voluntary return to the US from the Bahamas and her critical assistance in understanding the financial mismanagement at both FTX and Alameda Research, which helped in asset recovery.
In a court document submitted on Sept. 10, John Ray, the CEO of FTX who oversees its bankruptcy proceedings, acknowledged the significance of Ellison’s cooperation in recovering substantial assets.
Ellison’s lawyers also emphasized her previously clean record and provided character testimonials attesting to her integrity. They further contended that SBF’s manipulative behavior skewed her moral judgment, leading her to partake in unlawful activities while feeling trapped in a complicated personal and professional dynamic with him.
Plea deal
Ellison accepted a plea deal in December 2022 after FTX filed for bankruptcy. Prosecutors charged her with conspiracy and financial fraud, and she testified for nearly three days during SBF’s trial in November, revealing extensive details about the operations of both FTX and Alameda Research.
Prosecutors described her testimony as the “cornerstone” of the case, which significantly contributed to the jury’s guilty verdict against SBF on all seven counts.
Before its dramatic collapse, FTX stood as one of the largest cryptocurrency exchanges globally, recognized for aggressive lobbying in Washington and prominent advertising, including a Super Bowl spot. SBF and other executives face serious allegations of diverting customer funds for personal use, high-risk investments, and extravagant spending.
Ellison’s sentencing forms part of a broader series of legal actions against former FTX executives. In May, a judge sentenced Ryan Salame to seven and a half years in prison, while fellow executives Nishad Singh and Gary Wang await sentencing in the coming months.
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Author 
Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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In this article
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Alameda Research
Alameda Research was once a principal trading firm, operating as an arm of the failed crypto exchange, FTX.
Caroline Ellison is the former lead trader and former CEO at Alameda Research.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.
Ryan Salame is the former co-CEO at FTX Digital Markets (FDM), the Bahamian subsidiary of FTX Trading Limited.
