Sam Bankman-Fried pulled off one of the biggest financial frauds in this era. Still, he could not have done it without help, and this is why Caroline Ellison, the star witness of the trial against him, former Alameda Research chief executive, and ex-girlfriend, is also getting a prison sentence. This latest sentence against Ellison already took into account her significant help during Bankman-Fried's trial and was given leniency by the district court and judge.
Caroline Ellison Gets 2 Years in Prison for FTX Fraud with SBF
A new report from Bloomberg detailed the many events in court earlier, where Caroline Ellison received a two-year prison sentence for her actions and crimes, which led to defrauding thousands of customers and investors of FTX. The sentence was handed down by US District Judge Lewis Kaplan, with Ellison showing remorse for her actions and her part in the "criminal conspiracy" orchestrated by Bankman-Fried.
Moreover, Ellison also shared how "sorry" she was for all the people hurt by their actions, primarily by the notorious Sam Bankman-Fried when he still led the once largest crypto exchange platform.
Assistant US District Attorney Danielle Sassoon claimed that the government recommended giving Ellison a lighter sentence, which was later attested by Judge Kaplan. According to Kaplan's remarks, the initially recommended 110 years for Ellison was "absurd," especially with her significant cooperation and ironclad testimony, which helped put SBF behind bars.
Read Also: FTX CEO: SBF Did 'Vast' Harm to Customers, Lied About Funds, Solvency
Ellison Gets Leniency But is Asked to Forfeit $11 Billion
That being said, Judge Kaplan claimed that he might give leniency to Ellison, especially for her significant "assistance to the government," further praising her brave admittance of the crimes she did and helped in orchestrating for Bankman-Fried.
However, Kaplan noted that Ellison is still guilty of what she did. Ultimately, Ellison was ordered to serve 24 months in prison, and the court also asked her to forfeit $11 billion.
Sam Bankman-Fried's FTX Fraud Case
Sam Bankman-Fried was sentenced to 25 years to serve behind bars after being found guilty on seven charges, centering on his massive fraudulent activities and abusing his power as FTX's former CEO. This includes wire fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering, which he and other conspirators have done.
Ellison agreed to cooperate with the United States lawsuit against Sam Bankman-Fried and shared her actions and what she witnessed in court. This is despite being one of the closest people around Bankman-Fried, a former Alameda executive and his ex-girlfriend. Ellison is one of the key figures during SBF's trial, detailing Bankman-Fried's crimes when he was still head of FTX to a significant extent, and has been considered beneficial to quickly convicting the fraudster.
However, her testimonies in court are far too nefarious for this to be ignored by the law. Despite her significant cooperation, which helped take down Bankman-Fried and his "innocence" claim, she still had a hand in making it happen. Judge Kaplan extended the court's sentiments for all of Ellison's help and cooperation and was ultimately given a two-year sentence and forfeiture of $11 billion for her misconduct.
Related Article: FTX to Repay Debts in Full After Sam Bankman-Fried's Frauds
