During the trial, Ellison expressed remorse, saying that not a day goes by without thinking about the people affected by his actions.
SBF-Caroline-Ellison-1668176050
Caroline Ellison, ex-girlfriend of the founder of the bankrupt FTX brokerage, Sam Bankman-Fried (SBF), was sentenced this Tuesday (24) to two years in prison for her involvement in one of the biggest frauds in the history of cryptocurrencies.
The ruling was handed down by Judge Lewis Kaplan, who highlighted Ellison's “exceptional” cooperation with authorities during the investigation.
Despite facing up to 110 years in prison for the fraud and money laundering charges, the former executive ended up receiving a reduced sentence due to her collaboration with the American justice system.
According to the Judge, his cooperation was decisive in the conviction of Bankman-Fried, who is now serving a 25-year sentence.
Caroline Ellison cries during trial
During the trial, Ellison expressed remorse, stating that not a day goes by without thinking about the people affected by his actions.
Visibly emotional and in tears, she apologized to the victims of the fraud, while her lawyer, Anjan Sahni, argued that she had “recovered her moral compass.”
According to the attorney, Ellison is a person of character who, at 29, can still make a difference in the world, despite his mistakes. The defense sought to avoid any prison time, but Judge Kaplan was firm in stating that even with cooperation, a sentence was necessary.
Prosecutors also favored leniency. Assistant U.S. Attorney Danielle Sassoon said a lenient sentence was fair, considering Ellison's help in exposing SBF's crimes.
During the FTX founder's trial, Ellison detailed how he instructed her to manipulate Alameda Research's financial statements to hide the severity of its financial situation.
She also revealed that Alameda had unrestricted access to FTX customer deposits, which ended up being a major cause of the company’s collapse.
The FTX case was one of the biggest financial scandals involving cryptocurrencies, with billions of dollars of customers evaporating after the brokerage went down.
Ellison, however, chose to cooperate from the beginning of the investigation, admitting her participation in the crimes and collaborating with prosecutors. As a result, in addition to the reduced sentence, she will also have to return around US$11 billion, an amount corresponding to the losses of investors and users.
While Ellison has demonstrated remorse and has cooperated extensively with authorities, Judge Kaplan made it clear that there is no “get out of jail free card” for those who commit fraud of this magnitude.
Now, it remains to be seen how Ellison will serve her sentence, with the expectation that she will be sent to a minimum-security prison. She will still be able, as her lawyer said, to “do something positive” in her future life, after fulfilling her debt to justice.
