Caroline Ellison, former CEO of Alameda Research, received a two-year sentence for her involvement in a significant cryptocurrency fraud case.
The sentence is notably less severe than the potential maximum of 110 years she faced after admitting guilt to seven charges, including fraud.
Ellison testified against her ex-boyfriend, FTX founder Sam Bankman-Fried, during his trial. Her cooperation with prosecutors played a part in her sentencing, as the Manhattan District Attorney’s Office did not recommend a specific term to Judge Lewis Kaplan, only suggesting he consider her previous cooperation.
Bankman-Fried, known as “SBF,” was sentenced in March to 25 years for orchestrating one of the largest financial frauds in history. He is currently serving his sentence and has filed an appeal.
Read: Sam Bankman Fried Sentenced to 25 Years for FTX Fraud
In her testimony, Ellison claimed Bankman-Fried misappropriated customer funds to finance risky ventures. In defence, Bankman-Fried accused her of poor management.
Bankman-Fried had risen to prominence in the cryptocurrency sphere, turning his startup FTX, launched in 2019, into the world’s second-largest cryptocurrency trading platform within months. However, the trial revealed that FTX had misused deposited assets for high-risk transactions through Alameda Research, purchasing real estate, and making political donations.
FTX collapsed in November 2022, declaring bankruptcy with over $8 billion in liabilities.
