A U.S. District Court docket decide sentenced Caroline Ellison, a convicted cryptocurrency fraudster and former advisor and ex-girlfriend of FTX founder Sam Bankman-Fried, to 2 years in jail.
Ellison was reportedly sentenced for an $8 billion fraud dedicated by the FTX cryptocurrency change. 25 years in the past in March. After his launch from jail, Allison should additionally serve three years of supervised launch.
Allison pleaded responsible in late 2022 Simply as Bankman-Fried was being extradited to the USA from the Bahamas. U.S. Securities and Change Fee (SEC) Enforcement Director Sanjay Wadhwa mentioned after Allison pleaded responsible that she and Wang “actively participated in a scheme to hide materials info from FTX buyers.”
Ellison can also be the previous CEO of FTX sister firm Alameda Analysis. Prosecutors allege that she moved FTX consumer funds onto Alameda’s books to cover the chance from purchasers. Ellison testified towards Bankman-Fried, making her a key witness in his felony fraud trial.
Prosecutors additionally revoked Bankman-Good friend’s home arrest and bail when a decide discovered the FTX founder tried to hinder Ellison’s testimony final 12 months. Bankman-Fried tried to affect the testimony of Ellison, who was solely recognized as “Witness-1,” by sending messages to FTX’s basic counsel through Sign and electronic mail in 2023.
9 months later, Bankman-Fried confirmed Prosecutors mentioned it was an try to wreck her status, particularly amongst future jurors. The decide agreed that each circumstances warranted arrest and jail time whereas Bankman-Fried awaits trial. Bankman-Fried is at present serving a 25-year sentence in a federal jail in Brooklyn, awaiting enchantment of his conviction.
Ellison issued a press release earlier than her sentencing during which she apologized to these she and her former firm had defrauded. Prosecutors didn’t suggest a sentence and described her cooperation with investigators as “exemplary” in a memo to the decide.
“I take into consideration the individuals I harm each day,” Allison informed the courtroom. “I am deeply ashamed of what I did.”
