Caroline Ellison, former chief government officer of Alameda Analysis LLC, arrives at court docket in New York, US, on Tuesday, Sept. 24, 2024.
Michael Nagle | Bloomberg | Getty Pictures
Caroline Ellison, the star witness within the prosecution of FTX founder Sam Bankman-Fried, reported to a low-security federal jail in Connecticut on Thursday, in accordance with a spokesman for the Bureau of Prisons.
In September, Ellison was sentenced to 2 years in jail and ordered to forfeit $11 billion for her position within the large fraud and conspiracy that doomed the cryptocurrency change as soon as valued at $32 billion.
The federal Probation Division had beneficial that Choose Lewis Kaplan sentence Ellison to 3 years of supervised launch, with no time behind bars. Protection attorneys additionally had requested a punishment that did not embrace jail time.
Whereas Kaplan praised Ellison for her in depth cooperation with prosecutors — which led to the conviction of Bankman-Fried — the choose stated her legal sentence wanted to discourage different potential unhealthy actors from committing fraud.
Ellison ran Alameda Analysis, which was a sister hedge fund of FTX. She was additionally romantically concerned with Bankman-Fried.
Alameda obtained a lot of the $8 billion in buyer funds looted by Bankman-Fried from FTX. The stolen cash was used for Alameda’s buying and selling operation and different functions.
Ellison reached a plea cope with prosecutors in December 2022, a month after FTX spiraled into chapter 11. She pleaded responsible to conspiracy and monetary fraud fees.
Kaplan known as FTX the best monetary fraud perpetrated within the historical past of the U.S., and instructed the court docket in Manhattan in the course of the sentencing {that a} “literal get-out-of-jail-free card I am unable to conform to.”
“I’ve seen plenty of cooperators through the years and I’ve by no means seen one fairly like Miss Ellison,” stated Kaplan, who additionally stated he believed that Ellison was genuinely remorseful for her crimes and that her cooperation carried a steep worth for her emotionally.
Late final month, Former FTX government Nishad Singh was sentenced to time served and three years of supervised launch, changing into the fourth ex-employee of the collapsed crypto change to be punished.
At her sentencing, Ellison learn from a press release in a shaky voice whereas crying at instances as she apologized to the folks she had harm and stated she was deeply ashamed. She additionally stated she was sorry for not being courageous sufficient to stroll away from FTX and Bankman-Fried.
Kaplan allowed Ellison to stay free on bail till surrendering to jail both on or after Nov. 7.
Bankman-Fried selected to face trial and was convicted of all seven legal fraud fees in opposition to him. He was sentenced to 25 years in jail in March and likewise was ordered to pay $11 billion in forfeiture by Kaplan.
Each Bankman-Fried and Ellison had confronted the identical statutory most sentence of about 110 years in jail for his or her crimes.
WATCH: FTX founder Sam Bankman-Fried appeals fraud conviction
