Caroline Ellison gets two-year prison sentence for part in FTX fraud

Caroline Ellison, the former girlfriend of FTX co-founder Sam Bankman-Fried, has been sentenced to two years in prison for her part in the crypto exchange's collapse.

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Caroline Ellison gets two-year prison sentence for part in FTX fraud

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Ellison admitted charges including wire fraud and money laundering in a plea deal and also, in the words of Judge Lewis Kaplan, provided "remarkable" cooperation with prosecutors, testifying against Bankman-Fried.

Despite this cooperation, Kaplan said Ellison was "gravely culpable" and that her help and remorse should not be a "get out of jail free card".

Ellison ran Alameda Research, Bankman-Fried's crypto hedge fund, which was central to the FTX fraud. Alameda received as much as $8 billion in customer funds from FTX.

When FTX collapsed in 2022, Ellison quickly reached a plea deal with prosecutors, helping to convict Bankman-Fried, who was sentenced to 25 years in prison in March.

The judge said that Ellison gave prosecutors “one of the huge pieces of evidence in the case” when she handed over seven fake spreadsheets.

In court, Ellison apologised to the victims of the FTX scandal, adding: "On some level, my brain can't even comprehend the scale of the harm that I caused."

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