FTX boss's ex-girlfriend Caroline Ellison jailed for 2 years

Caroline Ellison, a former executive of the collapsed FTX crypto group, has been sentenced to two years in prison for her role in one of the largest crypto scandals, which cost investors billions.

In contrast, FTX CEO Sam Bankman-Fried (SBF) was sentenced to 25 years. Ellison, his one-time girlfriend, was the CEO of Alameda Research, a hedge fund controlled by SBF, which made risky investments using FTX clients' money.

She pleaded guilty to money laundering and fraud charges, while prosecutors praised her for her "extraordinary cooperation."

According to them, the former CEO of Alameda Research was crucial to the government's successful prosecution of SBF "for one of the largest financial frauds in history." They added that Ellison was uniquely positioned to explain not only the "what" and "how" of SBF's crimes but also the "why."

Meanwhile, multiple media reports note that during the sentencing, US District Judge Lewis Kaplan remarked that, in 30 years, he had seen many cooperators but "never one quite like Ms. Ellison." According to the judge, her punishment was necessary to deter others from committing similar crimes.

If Caroline Ellison had not cooperated with the government, both SBF and Ellison would have gotten free. Without Ellison's help, the government could not easily prove SBF intentionally stole from FTX customers. https://t.co/JwwGiWErEe

undefined Historian on the FTX Scam (@historian_ftx) September 25, 2024

🚨 THROWBACK: On the day of Caroline Ellison of FTX infamy’s sentencing, let’s revisit some all time Caroline bangers.

Here she is realizing Adderall gives her superpowers. pic.twitter.com/kJ1huwKjQR

undefined Autism Capital 🧩 (@AutismCapital) September 24, 2024

Additionally, Ellison was ordered to pay $11 billion as proceeds from the crime, though it's unclear how this was calculated or whether it will ever be fulfilled. The same order was also issued to SBF.

FTX collapsed in late 2022, causing its customers and partners to lose approximately $10 billion. However, this past August, the bankrupt company was ordered to repay its customers $12.7 billion. FTX has promised that customers will recover 100% of their funds based on the value of their accounts at the time when the exchange filed for bankruptcy.

Meanwhile, SBF, who is reportedly sharing the same jail with disgraced hip-hop mogul Sean "Diddy" Combs in New York, has appealed his sentence.