Caroline Ellison has been sentenced to 24 months in prison for her involvement in the collapse of FTX, despite her plea for leniency based on her cooperation with federal authorities

Caroline Ellison has been sentenced to 24 months in prison for her involvement in the collapse of FTX, despite her plea for leniency based on her cooperation with federal authorities.

Ellison, the former CEO of Alameda Research and ex-partner of the now-disgraced cryptocurrency magnate Sam Bankman-Fried (SBF), was also ordered to forfeit $11 billion. This ruling was handed down on September 24, despite her legal team's efforts to secure a non-custodial sentence.

Her attorneys argued for no prison time, highlighting her immediate return to the US from the Bahamas and her pivotal role in unraveling the financial mismanagement at FTX and Alameda Research. This assistance was crucial in recovering assets and played a significant role in the conviction of SBF, who received a 25-year sentence for various fraud charges.

In support of their case, Ellison’s lawyers cited her clean prior record and submitted character references vouching for her integrity. They pointed out that her involvement in the illegal activities was heavily influenced by SBF’s manipulative tactics, complicating her moral judgment within their personal and professional relationship.

As part of a plea agreement reached in December 2022 following FTX’s bankruptcy filing, Ellison admitted to conspiracy and financial fraud charges. Her detailed testimony over three days was instrumental in SBF’s trial in November, providing key insights into the operations at FTX and Alameda Research.

Her testimony was deemed a "cornerstone" of the prosecution, leading to SBF’s conviction on all counts. Before its downfall, FTX was a major player in the cryptocurrency exchange market, known for its influential lobbying and high-profile advertising campaigns, including a Super Bowl commercial.

Ellison’s sentence is part of ongoing legal repercussions for former FTX executives. In a related case, Ryan Salame was sentenced to seven and a half years in prison earlier in May, while Nishad Singh and Gary Wang are slated for sentencing soon.