Caroline Ellison Sentenced to Two Years for FTX Fraud

Caroline Ellison, the former girlfriend of Sam Bankman-Fried, has been sentenced to two years in prison for her involvement in the theft of $8 billion from customers of the collapsed FTX cryptocurrency exchange. U.S. District Judge Lewis Kaplan acknowledged her extensive cooperation with prosecutors but emphasized that remorse could not absolve her from accountability in what has been termed one of the largest financial frauds in U.S. history. Despite facing a maximum of 110 years, Ellison's lawyers had sought no prison time, arguing her cooperation was exceptional. She testified against Bankman-Fried, who is serving a 25-year sentence, revealing how Alameda Research misappropriated funds for risky investments. The judge noted a distinction between Ellison and Bankman-Fried, stating she was exploited by him, which contributed to a more lenient sentence. Ellison expressed remorse, stating, 'Not a day goes by when I don't think about all the people I hurt.'