Caroline Ellison begins two-year prison sentence for her role in FTX fraud

Caroline Ellison, a former high-ranking FTX executive known for her role as the CEO of Alameda Research, a trading firm closely affiliated with the cryptocurrency exchange FTX, began her two-year prison sentence on November 8, 2024, for her role in a fraud scheme that led to billions in losses for investors, lenders, and customers.

Ellison, 30, reported to the Danbury federal prison, according to the Federal Bureau of Prisons.

Currently, the Federal Bureau of Prisons (BOP) website stated Ellison was not in custody but provided an inmate number and her age, race and gender.

On September 24, 2024, Judge Lewis Kaplan of the United States District Court for the Southern District of New York sentenced Ellison to two years in prison, where she is expected to surrender no earlier than November 7.

Ellison was a key witness in the trial of FTX founder and her former boyfriend, Sam Bankman-Fried. She provided extensive testimony that contributed to Bankman-Fried's conviction and his 25-year prison sentence for defrauding FTX investors and customers.

In exchange for her cooperation, Ellison received a reduced sentence despite facing potential decades-long penalties.

During her sentencing in New York this past September, Ellison expressed remorse, apologizing and admitting her "deep shame" for her involvement.

She revealed details of how FTX executives, under Bankman-Fried’s direction, misused customer accounts to fund risky investments, make illegal political donations, bribe officials, and acquire luxury properties. Once one of the world's largest cryptocurrency exchanges, FTX collapsed in 2022, sparking a major scandal within the crypto industry.

Ellison’s cooperation with prosecutors was instrumental in building the case against Bankman-Fried. Her testimony shed light on the financial misdeeds within FTX and Alameda Research, revealing a culture of risky trading practices and financial mismanagement.