Caroline Ellison has been sentenced to two years in federal prison for her role in the FTX fraud, and was also ordered to forfeit $11 billion that she earned through her connection with the now-defunct crypto exchange.
Cooperation acknowledged by the court
Judge Lewis A. Kaplan praised Ellison’s cooperation with the prosecution, but despite this, he stressed that the extensive nature of the FTX fraud meant she couldn’t escape prison time.
“Cooperation isn’t a ‘get out of jail free’ card in a case of this magnitude.”
In addition to her prison term, Ellison will serve three years of supervised release after her sentence.
She may serve her time at a minimum-security facility near Boston and must complete at least 75% of her sentence before becoming eligible for parole.
Ellison’s testimony was important to the conviction of Sam Bankman-Fried, calling it the cornerstone of their case in a memo submitted before her sentencing. Assistant U.S.
Attorney Danielle Sassoon also highlighted Ellison’s remorse in contrast to Bankman-Fried’s lack of accountability.
Her legal team argued that her extraordinary cooperation and low risk of reoffending should lead to a lighter sentence.
They had recommended that she serve time already served plus three years of probation.
Ellison’s lawyer, Anjan Sahni, claimed that she was manipulated by Bankman-Fried, with whom she had previously been romantically involved, and stated that she has since recovered her moral compass.
Bankman-Fried seeks new trial
In related news, FTX founder Sam Bankman-Fried is pursuing a new trial with a different judge, alleging bias during his previous case.
His legal team filed an appeal claiming that Judge Kaplan displayed a prejudicial attitude that affected the outcome of the trial.
Furthermore, a group of doctors has submitted a brief supporting his appeal, pointing out his neurodivergent conditions such as autism spectrum disorder (ASD) and ADHD.
They argue that these conditions, along with his lack of access to necessary medication during the trial, impaired his ability to communicate effectively and contributed to his conviction.
Mistakes can’t be undone
Ellison expressed deep remorse for her actions. She apologized to former FTX customers, her family, and colleagues.
“The human brain is bad at comprehending big numbers. I can’t even begin to imagine the pain I’ve caused. If you had told me back in 2018 that I would end up pleading guilty to fraud, I would have told you you were crazy… At each stage of the process, it became harder and harder to extricate myself… I’m sorry I wasn’t brave.”
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