Caroline Ellison, the former CEO of Alameda Research, has officially begun her two-year prison sentence at the Federal Correctional Institution in Danbury, Connecticut. The Federal Bureau of Prisons confirmed the start of her sentence on Thursday, marking a significant development following the collapse of FTX.
Alameda Research’s Caroline Ellison Faces the Consequences
As part of her September sentencing, Judge Lewis A. Kaplan also mandated that Ellison serve three years of supervised release following her prison term. In his ruling, Kaplan commended Ellison’s candor as a witness, noting that he had “never seen” testimony quite like hers.
Ellison has been ordered to forfeit $11 billion for her role in the FTX collapse, which involved approximately $8 billion in misappropriated investor funds. In December 2022, she pled guilty to multiple charges, including conspiracy to commit money laundering, securities fraud, commodities fraud, and wire fraud. Her cooperation with federal prosecutors led to a reduced sentence compared to FTX founder Sam Bankman-Fried, who is currently serving a 25-year sentence.
Sentences for FTX Executives Draw Crypto Community Reactions
Ellison’s two-year sentence has sparked reactions from several within the crypto community, including Ryan Salame, former CEO of FTX Digital Markets. Salame, now serving a one-year sentence for campaign finance violations and operating an unlicensed money-transmitting business, criticized Ellison’s sentencing, suggesting it was disproportionately lenient given the scale of the FTX collapse.
In recent posts on X (formerly Twitter), Salame shared his concerns, stating, “I’m currently 5 pages deep of writing on analyzing Caroline’s testimony and things I know Caroline lied about or misrepresented on the stand.” He later remarked, “My mistake, (I) should have stolen everyone’s money so I could go to jail for substantially less time.”
Additional Sentences for FTX Leadership
Ellison is not the only former FTX executive to face sentencing. Last month, Nishad Singh, FTX’s former director of engineering, was sentenced to time served with three years of supervised release. Meanwhile, FTX co-founder and CTO Gary Wang is scheduled to be sentenced on November 20. These rulings underscore the legal repercussions faced by the key figures involved in the failed crypto venture.
For the latest insights on Bitcoin’s market dynamics and expert crypto news, visit CentBit.Online – Bangladesh’s trusted resource for cryptocurrency and blockchain updates.
