Former FTX Executive Caroline Ellison Set To Begin Two-Year Prison Sentence for Role in FTX Fiasco

Former FTX executive Caroline Ellison is set to start her two-year prison term in Connecticut.

According to a new report by CNBC, a Bureau of Prison (BOP) spokesperson said that Caroline Ellison – the former CEO of FTX’s sister company Alameda Research – will begin her two-year sentence after serving as the prosecution’s star witness.

Ellison was sentenced to prison and ordered to forfeit $11 billion for her role in the multi-billion-dollar downfall of the FTX ecosystem, which was masterminded by Bankman-Fried.

However, according to BOP records, Ellison (register number 36854-510) is not in custody yet as of writing. She is expected to report by 2 p.m. today.

According to previous reports, Ellison pleaded guilty to conspiring with her ex-boyfriend to steal billions of dollars worth of crypto assets from FTX customers. Bankman-Fried was subsequently sentenced to decades behind bars for defrauding investors and mishandling customer funds.

Bankman-Fried would order his staff to transfer billions of dollars of customer funds to Alameda Research from FTX as a means of making risky crypto investments, events to which Ellison and others testified.

The judge of the case, Lewis A. Kaplan, found that Ellison was extraordinarily cooperative in the case, a sentiment also shared by prosecutors.

As stated by Judge Kaplan before handing out her sentence,

“I have seen a lot of cooperators. I have never seen one like Ms. Ellison. What she said on the stand was very incriminating of herself, and she pulled no punches about it.”

Kaplan said that despite being sincere and remorseful, the severity of Ellison’s crimes still warranted her to serve time in prison. She will also be subject to three years of supervised release.

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Featured Image: Shutterstock/Ahmad Kurnia Sandy