Caroline Ellison Begins Two-Year Prison Sentence

Caroline Ellison, the former CEO of Alameda Research, has begun serving her two-year prison sentence for her role in the FTX collapse, which resulted in significant financial losses for investors and customers. She reported to a low-security federal prison in Connecticut after being sentenced in September, where she was ordered to forfeit $11 billion. Ellison had cooperated extensively with prosecutors, testifying against her former boyfriend, FTX founder Sam Bankman-Fried, who was sentenced to 25 years in prison for his part in the fraud. Judge Lewis Kaplan emphasized that while Ellison's cooperation was commendable, a prison sentence was necessary to deter future fraud. Ellison expressed deep remorse during her sentencing, regretting her involvement in the scheme. The FTX collapse has been described as one of the largest financial frauds in U.S. history, involving the misappropriation of billions in customer funds.