Caroline Ellison, former top executive at the cryptocurrency exchange FTX, has been sentenced to two years in prison for her role in what has been described as one of the biggest financial frauds in US history. Ellison, 29, was also the ex-girlfriend of FTX’s founder, Sam Bankman-Fried, who was sentenced to 25 years in prison for stealing over $8 billion from customers.
As part of a plea deal, Ellison admitted charges of wire fraud and money laundering, and testified against Bankman-Fried. She was ordered to forfeit more than $11 billion to the court and could face additional restitution. Despite facing a maximum sentence of 110 years, Ellison received a two-year sentence.
Judge Lewis Kaplan praised Ellison’s cooperation with prosecutors but emphasized her grave culpability in the scheme. In court, Ellison apologized to the victims, expressing remorse for the harm caused. FTX, founded in 2019, quickly rose to become the third largest crypto exchange in the world before its collapse in 2022.
Bankman-Fried’s conviction last year revealed how he used customers’ money for personal gain, leading to the implosion of FTX. Ellison, who lived and worked closely with Bankman-Fried, agreed to help criminal investigations and testified against him, adding to the drama of the trial.
Despite arguments from her legal team that her cooperation should spare her from jail time, Ellison’s sentencing reflects the seriousness of her involvement in the fraud. The US Attorney’s office in Manhattan acknowledged her cooperation and remorse but did not advocate for a specific sentence. Ryan Salame, co-CEO of FTX’s Bahamian subsidiary, was also sentenced to 90 months in prison for related charges.
