FTX cryptocurrency scandal: Caroline Ellison, former executive of the now-defunct FTX cryptocurrency exchange, has been sentenced to two years in prison. The sentencing, handed down by U.S. District Judge Lewis A. Kaplan, also includes an order for Ellison to forfeit $11 billion.
Ellison, who previously served as the CEO of Alameda Research, a hedge fund closely linked to FTX, was a key figure in the multibillion-dollar fraud that led to the collapse of the cryptocurrency exchange.
During her testimony, Ellison expressed deep remorse for her actions, stating, “Not a day goes by when I don’t think about all the people I hurt. My brain can’t even truly comprehend the scale of the harms I’ve caused. That doesn’t mean I don’t try”, according to AsiaFinancial.com.
Judge Kaplan acknowledged Ellison’s cooperation with prosecutors, which was instrumental in the conviction of FTX founder Sam Bankman-Fried. “I’ve seen a lot of cooperators in 30 years here. I’ve never seen one quite like Ms. Ellison,” Kaplan remarked.
However, he emphasized that her cooperation did not absolve her of responsibility, noting, “Her participation in what might be the greatest financial fraud ever perpetrated in this country warrants a prison sentence”.
Ellison’s defense team highlighted her vulnerability and Bankman-Fried’s influence over her. They argued that she was exploited and manipulated but also stressed that she was not trying to evade responsibility. “Caroline blames no one but herself for what she did,” her lawyers wrote in a court filing.
