Caroline Ellison Starts Two-Year Sentence for FTX Fraud Participation

Caroline Ellison, a former top executive at Alameda Research, reported to a federal prison in Danbury, Connecticut on November 7, 2024, to begin a two-year prison sentence. Previously, Ellison had pleaded guilty and cooperated with authorities against Sam Bankman-Fried, her ex-boyfriend and founder of the collapsed FTX cryptocurrency exchange. Her cooperation led to Bankman-Fried’s conviction and a 25-year sentence. During her sentencing in September, Ellison expressed deep remorse for her actions, which involved significant financial losses for numerous investors and customers. U.S. prosecutors have accused Bankman-Fried and other executives of illegal activities including the misuse of customer funds for risky investments and political donations. Ellison's case reflects the broader implications of the cryptocurrency industry's vulnerabilities and ethical challenges.