The sentence of former Alameda Research CEO Caroline Ellison has been revealed

Caroline Ellison was sentenced Tuesday to two years in federal prison for her involvement in the FTX fraud scandal.

The 30-year-old was also ordered to forfeit $11 billion, which she earned through her association with the now-collapsed cryptocurrency exchange.

Ellison’s cooperation

Judge Lewis A. Kaplan, who presided over the case, acknowledged the former Alameda Research CEO’s cooperation with the prosecution: “I have never seen a co-operator like Miss Ellison,” he remarked. Despite this, Kaplan emphasized that the scale of the FTX fraud meant he could not avoid prison time. “Cooperation is not a ‘get out of jail free’ card in a case of this magnitude,” he added.

His sentence includes three years of supervised release upon completion of his prison term, which he could serve at a minimum security facility near Boston. Due to the federal nature of his crime, he must serve at least 75% of his sentence before he is eligible for parole.

Prosecutors described Ellison’s testimony as crucial to Bankman-Fried’s conviction, calling it a “cornerstone” of the case in a memo before Tuesday’s hearing. Assistant US Attorney Danielle Sassoon also highlighted this, contrasting her remorse with her lack of responsibility.

His lawyers also argued that his “extraordinary cooperation” and low risk of reoffending should result in a more lenient sentence. His legal team and the probation department had previously recommended time served plus three years of probation.

Her lawyer, Anjan Sahni, said Ellison had been manipulated by SBF, with whom she had a past romantic relationship, and had since “regained her moral compass”. Judge Kaplan added: “You were vulnerable and you were exploited.”

SBF’s appeal for a new trial

Meanwhile, the FTX founder is seeking a new trial with a different judge, alleging bias in his previous case. His legal team has filed an appeal arguing that Judge Kaplan, who presided over the original trial, displayed a prejudicial attitude that they believe affected the verdict.

In addition, a group of doctors filed a brief supporting his appeal, citing his neurodivergent conditions, including autism spectrum disorder (ASD) and ADHD. They argued that his conditions, combined with a lack of access to necessary medication during the trial, affected his ability to communicate effectively and contributed to his conviction.

Before she was sentenced, Ellison was remorseful and apologized to former FTX clients, her family and her colleagues. “The human brain is bad at understanding large numbers,” he said. “I can’t even begin to imagine the pain I’ve caused.”

She concluded: “If you had told me in 2018 that I would end up pleading guilty to fraud, I would have told you that you were crazy… At each stage of the process, it became harder and harder to get out… I’m sorry I wasn’t brave.”

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