Caroline Ellison, former CEO of Alameda Research LLC, arrives in a U.S. courtroom in New York, Tuesday, September 24, 2024.
Michael Nagel | Bloomberg | Getty Images
carolyn ellisonStar Witness in Prosecution of FTX Founder Sam Bankman-FreedThe incident was reported Thursday to a low-security federal prison in Connecticut, according to a Bureau of Prisons spokesman.
SeptemberEllison was sentenced to two years in prison for his role in the massive incident and ordered to forfeit $11 billion. Fraud And a conspiracy doomed to destruction cryptocurrency exchange It was once valued at US$32 billion.
Federal Probation Department Recommendations Judge Lewis Kaplan Ellison was sentenced to three years of supervised release with no chance of jail time. Defense attorneys also asked for a penalty that would not include jail time.
Kaplan praised Ellison’s extensive cooperation with prosecutors, which led to conviction Judge Bankman Fried said her criminal sentence was needed to deter other potential bad actors from committing the fraud.
Ellison ran away Alameda Research CenterIt is a sister hedge fund of FTX. She was also in a relationship with Bankman-Fried.
Alameda received the majority of the $8 billion in customer funds that Bankman-Fried looted from FTX. The stolen funds were used in Alameda’s trading operations and for other purposes.
Ellison reached Plea agreement reached with prosecutors in December 2022FTX fell into bankruptcy a month later. she confessed Conspiracy and financial fraud charges.
Kaplan called FTX the largest financial fraud in U.S. history and told a Manhattan courtroom during sentencing, “I can’t agree to a real get-out-of-jail-free card.”
“I have met many collaborators over the years, but I have never met anyone like Miss Ellison,” Kaplan said. He also said he believed Ellison was sincerely remorseful for her crimes and that her cooperation allowed Miss Ellison paid a high price. She is emotionally.
Late last month, former FTX executive Nishad Singh was sentenced to jail time and three years of supervised release, becoming the fourth former employee of the collapsed cryptocurrency exchange to be punished.
At the sentencing, Ellison read a statement in a trembling voice, crying at times, apologizing to those she had hurt and saying she was deeply ashamed. She also said she was sorry for not having the courage to leave FTX and Bankman-Fried.
Kaplan granted Ellison bail until he surrenders to jail on or after Nov. 7.
Bankman-Fried chose to stand trial and was All seven were found guilty Criminal fraud charges were filed against him. he is Sentenced to 25 years in prison He was jailed in March and ordered by Kaplan to forfeit $11 billion.
Bankman-Fried and Ellison both face the same statutory maximum sentence for their crimes, about 110 years in prison.
watch: FTX founder Sam Bankman-Fried appeals fraud conviction
