Ex-Alameda CEO Caroline Ellison Sentenced to 24-Months in Prison
Caroline Ellison, former CEO of Alameda Research, has been sentenced to two years in prison for her role in the downfall of crypto exchange FTX.
After completing her prison term, she will also serve three years of supervised release. Judge Lewis Kaplan, who delivered the sentence, acknowledged her cooperation in the investigation but emphasized that her involvement in a significant financial fraud could not be ignored.
Ellison became emotional in court as she addressed her supporters, including her family, pledging to spend her life trying to be worthy of their trust.
Despite facing potential sentences far longer, her cooperation with authorities helped significantly reduce her prison time. Her legal team argued that her actions were heavily influenced by FTX founder Sam Bankman-Fried, who they claimed had a strong hold over her decisions.
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Ellison played a pivotal role in the case against Bankman-Fried, revealing that Alameda had improperly borrowed funds from FTX under his direction.
In contrast to Bankman-Fried’s approach, prosecutors noted that Ellison wasn’t driven by greed. Bankman-Fried, convicted of several fraud charges, received a 25-year sentence and is currently appealing the decision.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
