Former Alameda Research CEO Caroline Ellison began a two-year jail term for her role in the FTX scam.
Gary Wang, the co-founder of FTX, and Caroline Ellison, the former CEO of Alameda Research, are both currently facing prison sentences as the legal repercussions of the FTX scandal persist. Wang has urged leniency for Ellison, who started serving a two-year sentence for misusing FTX customer cash. Wang cited his assistance in the Sam Bankman-Fried case. Wang, a crucial witness in Bankman-Fried’s trial, claimed that his limited participation and cooperation with police should free him from prison time before his Nov. 20 sentence.
Caroline Ellison, former CEO of Alameda Research, will begin her two-year jail term, a major milestone in the FTX controversy. This is the latest development in a complicated and high-profile case that has shaken the cryptocurrency sector and resulted in FTX leaders’ guilty pleas.
Ellison was not in detention as per the latest BOP reports, but her inmate number and sentence had been revealed. In September, Judge Lewis Kaplan of the US District Court for the Southern District of New York sentenced Ellison to two years in prison and ordered him to surrender by 2:00 pm ET on Nov. 7. Her probable destination is the Federal Correctional Institution in Danbury, Connecticut, a minimum-security prison near Boston that handles white-collar crime sentences for men and women.
Ellison’s sentence followed former FTX CEO Sam Bankman-Fried’s conviction and co-CEO Ryan Salame’s guilty plea. These high-profile CEOs’ indictments have sparked media attention and bitcoin industry responsibility. Former FTX engineering director Nishad Singh was convicted in October but served time.
In November 2022, FTX collapsed due to liquidity issues and internal financial mismanagement, sealing Ellison’s doom. Ellison faced wire fraud, commodities fraud, securities fraud, and money laundering charges. She pleaded guilty in 2022 and testified in Bankman-Fried’s 2023 trial. Her evidence helped demonstrate the criminal purpose and operational specifics of FTX’s alleged misuse of customer cash, leading to Bankman-Fried’s guilty judgment.
Ellison under intense scrutiny as a prominent role in the FTX affair. The US government’s September sentencing statement cited her constant criticism, abuse, and humiliation on social media and in court. The document detailed Ellison’s distinct online and in-person abuse. Heavily photographed and questioned outside courtrooms, she needed personal guards for protection.
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