Sam Bankman-Fried’s ex-girlfriend gets off light after cooperating with the investigation

Caroline Ellison, the former CEO of Alameda Research, was sentenced to two years in a minimum-security prison yesterday for her involvement in the collapse of FTX, the cryptocurrency exchange. The sentencing was delivered by Judge Lewis Kaplan of the District Court of Southern New York. In addition to her prison time, Ellison was ordered to forfeit approximately $11 billion that she earned through FTX.

Ellison’s sentencing could have been much harsher. She faced the possibility of a 110-year prison term for her role in FTX’s downfall, but Judge Kaplan showed some leniency. He acknowledged that while Ellison had strength, she was also vulnerable and exploited, particularly in her relationship with FTX founder Sam Bankman-Fried. The judge’s remarks alluded to the influence Bankman-Fried had over Ellison.

During the hearing, Ellison appeared visibly emotional, with her hands clasped as the sentence was read. Her family, present in the courtroom, was also seen crying. Ellison, who has kept a low profile since the FTX collapse, shared that she has faced significant harassment from the crypto community, both online and in person, making her fearful of appearing in public.

One factor that contributed to her reduced sentence was Ellison’s cooperation with the prosecution. Her assistance in the case against Bankman-Fried, who was also her former colleague and boyfriend, played a major role in the recommendation for leniency.

Other former FTX executives are also awaiting sentencing. Gary Wang and Nishad Singh are expected to face jail time, with Singh’s sentencing scheduled for October 30 and Wang’s for November 20. Ryan Salame, another former executive, was sentenced to seven and a half years earlier this year, while Bankman-Fried received a 25-year sentence.

Emma Rodriguez is the Proofreader at the Big Blind, with seven years of experience and five years in online gambling. She plays a crucial role in maintaining content quality by ensuring error-free, reader-friendly information about the gambling industry.