Caroline Ellison, a former employee of the disgraced cryptocurrency mogul Sam Bankman-Fried, was sentenced to two years in prison for fraud and conspiracy. Ellison’s testimony helped convict Bankman-Fried, who was sentenced to 25 years in prison for criminal fraud charges. Ellison had faced a maximum sentence of 110 years but accepted a plea deal and cooperated with authorities, leading to a reduced sentence. She was also ordered to forfeit $11 billion for her involvement in the collapse of Bankman-Fried’s crypto exchange company, FTX.
Before its collapse, FTX was one of the world’s most popular cryptocurrency exchanges known for its extensive lobbying campaign in Washington and its Super Bowl commercial. Bankman-Fried and other top executives were accused of looting customer accounts on the exchange for risky investments, luxury real estate purchases, illegal political donations, and bribery of Chinese officials. Other former FTX executives, including Ryan Salame, Nishad Singh, and Gary Wang, are also facing sentencing for their roles in the collapse.
Ellison’s defense attorneys argued that she was manipulated and pressured by Bankman-Fried, who created an environment of fear and isolation. Despite expressing remorse and apologizing for her actions, the judge described FTX’s collapse as possibly the greatest financial fraud uncovered in U.S. history and rejected a plea for time served. Ellison is ordered to surrender to authorities in November. Her cooperation with federal prosecutors was deemed valuable in preserving millions of dollars in assets for FTX during bankruptcy proceedings.
Photo credit
www.nbcnews.com