• Caroline Ellison is facing two years of jail time after pleading guilty to FTX fraud.

• The CEO of Alameda Research admitted to wire fraud and money laundering charges.

• In addition to jail, Ellison was ordered to forfeit assets worth over $11 billion.

Caroline Ellison, the former CEO of Alameda Research, has been sentenced to a two-year jail term for being part of the FTX fraud. She pleaded guilty to seven charges, including wire fraud and money laundering. 

As part of a plea deal with the prosecutors, Ellison testified against Bankman-Fried, founder of FTX. She was also his ex-girlfriend. With her confession, Ellison was able to reduce her jail term from 110 years to a minimum of two years.

Judge Lewis Kaplan, United States Southern District of New York, handled the case. He stated that her cooperation with prosecutors was ‘remarkable.’ Ellison was ordered to forfeit her assets, which amounted to more than $11 billion. Additionally, the ex-CEO of Alameda Research might pay more if she is handed more restitution. 

Ellison testified for three days to the jury, implying that her ex-boyfriend had directed her and other executives to transfer the investors’ funds without their knowledge. The stolen funds were used for buying properties, investments, and political donations. By providing all the details, Ellison’s legal team revealed that the secrets were spilled to avoid her being sent to jail. 

Although the couple is said to be unsteady in their relationship, they jointly built the FTX and Alameda Research. The now-defunct cryptocurrency exchange FTX, is described to be one of the biggest scams in history. 

In 2022, Bankman-Fried was arrested in the Bahamas after financial trouble sparked controversy. He had embezzled over $8 billion from the investors and is currently serving 25 years in prison. 

Earlier this month, Bankman-Fried had appealed for a new trial under a new judge. The legal team of the ex-CEO of FTX stated that the judge in the previous trial was unfair in the case proceedings and portrayed judicial bias. Interestingly, the judge who presided over the case was Judge Lewis Kaplan.

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