Caroline Ellison, a key witness within the conviction of FTX co-founder Sam Bankman-Fried, was sentenced to 2 years in jail on Tuesday for her position in one of many largest monetary frauds in historical past.
Ellison, 29, a former crypto government, had pleaded responsible to a number of fees in reference to the federal fraud and conspiracy case involving the crypto buying and selling platform. She cooperated with prosecutors and was a key witness in the course of the trial final yr of Bankman-Fried, her former boyfriend.
Ellison — who was the co-chief government of Alameda Analysis, Bankman-Fried’s companion hedge fund — testified over three days in the course of the trial, telling the courtroom she dedicated fraud along with her former on-again, off-again boyfriend and at his route.
Caroline Ellison, former chief government officer of Alameda Analysis LLC, proper, arrives at courtroom in New York Metropolis, Sept. 24, 2024.
Michael Nagle/Bloomberg by way of Getty Photos
Bankman-Fried was finally discovered responsible on all counts for defrauding FTX clients out of $8 billion and sentenced to 25 years in jail.
Throughout Ellison’s sentencing listening to in New York Tuesday afternoon, Choose Lewis Kaplan known as her cooperation with the federal government “very, very substantial” and famous a “basic distinction” between Ellison and Bankman-Fried.
“She cooperated and he denied the entire thing,” Kaplan stated. “I’ve seen numerous cooperators in 30 years right here. I’ve by no means seen one fairly like Ms. Ellison.”
Nonetheless, the choose stated even extraordinary cooperation couldn’t be a “get out of jail free card.”
The choose known as out one other distinction between Ellison and Bankman-Fried.
“You’re genuinely remorseful,” Kaplan stated. “He is sorry the gamble he took did not work out and he is actually sorry he bought caught.”
Caroline Ellison, a former chief government at Alameda Analysis, which was related to Sam Bankman-Fried’s cryptocurrency firm FTX, arrives to United States federal courtroom for a sentencing listening to in New York Metropolis, Sept. 24, 2024.
John Taggart/epa-efe/shutterstoc/JOHN TAGGART/EPA-EFE/Shutterstoc
Earlier than the choose handed down the sentence, Ellison stood at a podium and apologized.
“I need to apologize most of all to the victims,” Ellison stated, sniffling by way of tears. “Not a day goes by after I do not take into consideration all of the folks I harm.”
Ellison stated she was “deeply ashamed” by her conduct that enabled what the protection conceded was an “monumental and extraordinary fraud.”
It uncovered Ellison to 110 years in jail, however her legal professional sought a sentence with out jail time.
“She has recovered her ethical compass,” protection legal professional Anjan Sahni stated in courtroom. “Caroline Ellison is an effective one who, at 29 years outdated, can nonetheless make a optimistic impression on the world.”
Prosecutors agreed.
“Caroline Ellison deserves leniency,” Assistant United States Legal professional Danielle Sassoon stated. “A lenient sentence can be what’s simply.”
Sassoon famous Ellison persistently advised the reality and by no means shied from her personal culpability.
“This was a robust distinction with Bankman-Fried’s testimony,” Sassoon stated.
Forward of her sentencing, Ellison’s attorneys urged Kaplan to be lenient, arguing Ellison “unflinchingly acknowledged her personal wrongdoing, with out minimization, blame shifting or self-pity.”
“She again and again proved herself an enormously credible and necessary cooperating witness” towards Bankman-Fried, they added.
Federal prosecutors agreed Ellison offered “extraordinary cooperation that was essential to the Authorities’s profitable prosecution” of Bankman-Fried.
“Though she didn’t blow the whistle on any misconduct earlier than FTX’s collapse, she got here clear previous to FTX’s declaring chapter to her workers on November 9, 2022,” Sassoon wrote in a letter to the choose. “Ellison approached her cooperation with outstanding candor, regret, and seriousness.”
Caroline Ellison former CEO of Alameda Analysis based by Sam Bankman-Fried goes right into a improper automotive as she exits the Manhattan federal courtroom after testifying on Tuesday, Oct. 10, 2023, in New York.
Eduardo Munoz Alvarez/AP, FILE
Prosecutors declined to make a selected sentencing suggestion of their submitting. Protection attorneys advised a sentence according to a suggestion from probation officers of time served plus three years supervised launch.
“Caroline poses no danger of recidivism and presents no risk to public security. It will subsequently promote respect for the legislation to grant leniency in recognition of Caroline’s early disclosure of the crimes, her unmitigated acceptance of accountability for them, and — most significantly — her intensive cooperation with the federal government,” Sahni wrote in a letter to the choose.
Sahni outlined Ellison’s “advanced” relationship with Bankman-Fried that started when the 2 met at Jane Avenue Capital in 2015 when she was an intern and he was a junior dealer. He stated their “on-again-off-again, sometimes-secret relationship” had “warped” her ethical compass and led her to take actions “that she knew to be improper, serving to him steal billions.”
Throughout Bankman-Fried’s sentencing listening to in March, Choose Kaplan additionally ordered that he forfeit $11 billion that the federal government can use to compensate victims.
The previous crypto billionaire has filed an attraction to overturn his conviction.
Two former FTX executives who additionally pleaded responsible within the case — former director of engineering Nishad Singh and co-founder Gary Wang — are set to be sentenced in October and November, respectively.
