Caroline Ellison Sentenced to Two Years for Role in FTX Collapse

Caroline Ellison, the former CEO of Alameda Research, has been sentenced to two years in prison for her involvement in the downfall of FTX, one of the largest financial scandals in recent history. Ellison pled guilty in 2022 to charges of conspiracy, fraud, and money laundering, admitting that she played a central role in the misuse of customer funds at FTX. She helped Alameda Research, FTX’s sister company, access these funds under the direction of FTX founder Sam Bankman-Fried. Her cooperation with authorities and testimony against Bankman-Fried were instrumental in his conviction, which earned him a 25-year sentence.

Ellison’s cooperation also led to a lighter sentence than initially expected. Despite facing severe charges, she received just two years in prison after forfeiting $11 billion related to the fraud. Although the federal Probation Department recommended no jail time, the court imposed a prison sentence to ensure accountability for her role in the collapse that caused billions in consumer losses​