Caroline Ellison Sentenced to Two Years in Prison, Ordered to Forfeit $11 Billion in FTX Fraud Case

Caroline Ellison, the former CEO of Alameda Research and a key figure in the collapse of FTX, was sentenced to two years in prison and ordered to forfeit $11 billion on Tuesday by a federal judge in New York. Ellison, who played a central role in the massive fraud scheme alongside her former boyfriend, FTX founder Sam Bankman-Fried, had previously cooperated extensively with prosecutors, providing testimony that led to Bankman-Fried’s conviction.

The sentence, handed down by U.S. District Judge Lewis Kaplan, was harsher than the recommendation from the federal Probation Department, which had advocated for a sentence of three years of supervised release with no prison time. Despite Ellison’s cooperation and expressed remorse, Judge Kaplan emphasized that a prison term was necessary to deter future financial crimes, calling the FTX fraud likely the largest financial fraud in U.S. history.

While acknowledging Ellison’s emotional toll and sincere regret, Kaplan stated, “A literal get-out-of-jail-free card I can’t agree to.” He added that her cooperation had been invaluable but did not absolve her of responsibility for her role in defrauding FTX customers of billions of dollars.

Ellison, visibly emotional during the sentencing, apologized for her actions and expressed deep regret for not walking away from FTX and Bankman-Fried sooner. She remains free on bail until her surrender date, which is set for November 7.