FTX Deputy Sentenced

Caroline Ellison, the former CEO of Alameda Research, was sentenced in New York yesterday to two years in federal prison and ordered to forfeit $11B for her role in the collapse of cryptocurrency exchange FTX. The sentencing was stiffer than what prosecutors had sought. Ellison pleaded guilty in December 2022 to seven criminal charges, including wire fraud and money laundering.

The 29-year-old was a key figure in the $8B fraud scheme orchestrated by FTX founder Sam Bankman-Fried. Ellison admitted to conspiring with Bankman-Fried by lying to investors, stealing FTX customer funds, and using those funds to create misleading financial statements. Ellison testified against Bankman-Fried, her former colleague and romantic partner, in his trial last year. He was found guilty in November and sentenced to 25 years in prison. See timeline of events here.

Two other former senior FTX executives, Nishad Singh and Gary Wang, also pleaded guilty and will be sentenced Oct. 30 and Nov. 20, respectively.