Former Alameda Research CEO Caroline Ellison was sentenced to two years in a minimum-security prison on Sept. 24 for her involvement in the collapse of FTX. The ruling came from Judge Lewis Kaplan of the Southern District of New York, who also ordered Ellison to forfeit about $11 billion earned from her role in the company. Her prison surrender date is scheduled for Nov. 7, 2024, or later.
Despite facing a potential sentence of 110 years, Ellison received a lighter punishment due to the court’s recognition of her vulnerability and the influence of Sam Bankman-Fried, her former colleague and romantic partner. Judge Kaplan expressed sympathy, noting Ellison had been exploited. During sentencing, Ellison appeared emotional, with her family visibly upset. She had previously spoken about harassment from the crypto community, which led her to avoid public appearances.
Ellison cooperated extensively with prosecutors, who advocated for leniency in her sentencing. Her defense team had sought a sentence of time served, but Kaplan rejected that request.
Other former FTX executives, including Gary Wang and Nishad Singh, are also expected to receive prison sentences. Singh’s sentencing is set for Oct. 30, and Wang’s for Nov. 20. Both have pleaded guilty. Earlier in the year, former FTX executive Ryan Salame received a seven-and-a-half-year sentence, and FTX founder Sam Bankman-Fried was sentenced to 25 years in March.
