🌐 FTX Collapse: Caroline Ellison Sentenced to Two Years, $11 Billion Confiscated!
Caroline Ellison, former CEO of Alameda Research and ex-girlfriend of former FTX CEO SBF, was sentenced to two years in prison and had about $11 billion in assets confiscated for playing an important role in the FTX collapse.
Recall that Ellison pleaded guilty to a bunch of charges last December, including wire fraud, commodity fraud, securities fraud, and money laundering. But she later chose to cooperate with prosecutors and testified in SBF's trial earlier this year.
Ellison said that it was SBF who made her do the things that led to the collapse of FTX. At the same time, Alameda can embezzle customers' assets at will, which can be used by SBF and his team to squander and invest independently.
Lewis Kaplan, the judge in charge of the SBF case, said that the difference between Ellison and SBF is that Ellison cooperated with prosecutors, while SBF denied everything.
Because of Ellison's cooperation, her lawyer tried to save her from imprisonment and proposed a federal probation department recommendation that she be sentenced to three years of supervised release, but ultimately failed.
Meanwhile, FTX's former engineering director Nishad Singh and co-founder Gary Wang also pleaded guilty and will attend sentencing hearings in the coming months.
In March of this year, FTX's former CEO SBF was sentenced to nearly 25 years and was required to repay $11 billion to investors and creditors.
Ellison's sentence is not only a personal punishment, but also a wake-up call for the entire cryptocurrency industry. For investors, it should be realized that this is a signal that regulators are stepping up their scrutiny of the cryptocurrency field. In short, transparency and accountability are the keys to future investment success.
🧐 What do you think of this verdict? Will the legal regulatory consequences in the cryptocurrency world be a game changer?
