Former Alameda Research CEO Caroline Ellison has been sentenced to two years in prison for her involvement in a massive financial fraud scheme linked to FTX founder Sam Bankman-Fried. Ellison, Bankman-Fried’s former business partner and girlfriend, pleaded guilty to seven charges after the collapse of FTX in 2022. Despite facing a maximum sentence of 110 years, Ellison received leniency from the judge due to her cooperation with investigators, including testifying against Bankman-Fried during his trial.
United States District Judge Lewis A Kaplan commended Ellison’s substantial cooperation but ultimately ruled that a prison term was necessary given the gravity of the fraud. He recommended that Ellison serve her sentence in a minimum-security prison. During Bankman-Fried’s trial, Ellison revealed that he instructed her to use FTX customers’ funds for risky transactions, real estate purchases, and political donations through Alameda Research.
Bankman-Fried, who was sentenced to 25 years in prison in the same trial, has since filed an appeal against his conviction on fraud and conspiracy charges. He accused the judge of preventing his legal team from presenting evidence that could have bolstered his defence. Despite Bankman-Fried’s attempts to portray himself as a well-meaning entrepreneur, Ellison’s testimony played a crucial role in his conviction. The case stands as one of the most significant financial frauds in recent memory, with both parties facing legal consequences for their roles in the scheme.
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