Former Alameda CEO sentenced to 2 years in prison for role in FTX scandal

Caroline Ellison, the former CEO of Alameda Research, has been sentenced to two years in prison for her involvement in the collapse of FTX.

On September 24, Judge Lewis Kaplan of the Southern District of New York delivered the verdict, marking a key moment in the aftermath of one of the most significant financial scandals in crypto history.

Ellison, who played a pivotal role in Alameda’s operations during the FTX meltdown, could have faced up to 110 years in prison.

However, her cooperation with authorities in the prosecution of FTX founder Sam Bankman-Fried led to a significantly reduced sentence. The judge acknowledged her cooperation, while also ordering her to forfeit the $11 billion she earned from the failed crypto exchange.

While Ellison’s lawyers sought a sentence of time served, Judge Kaplan made it clear that there would be no escape from jail time. Ellison is set to begin serving her sentence after November 7 in a minimum-security prison.

Throughout the proceedings, Ellison expressed that the intense public scrutiny and harassment from the crypto community had taken a heavy toll on her life, leaving her fearful of public outings.

Despite this, her cooperation with prosecutors helped them build their case against Bankman-Fried, who was sentenced to 25 years earlier this year.

Ellison’s sentencing also signals potential jail time for other former FTX executives who have pleaded guilty, including Gary Wang and Nishad Singh.

Both are scheduled for sentencing in the coming weeks, following the sentencing of Ryan Salame, another FTX executive, who received seven and a half years in prison in May.