Former FTX Executive Caroline Ellison (SBF's Girlfriend) Sentenced to 2 Years in Prison and Fined $11 Billion

Caroline Ellison, the second-in-command at the now-defunct cryptocurrency exchange FTX and girlfriend of founder Sam Bankman-Fried (SBF), has been sentenced in a Manhattan federal court in the United States.

During the trial, the judge went to great lengths to advocate for Ms. Ellison. It wasn't that her crimes were less severe, but rather her proactive cooperation with prosecutors and the court in testifying against SBF after her arrest.

Ms. Ellison pleaded guilty to seven criminal charges, including conspiracy to commit fraud. While prosecutors sought a 110-year prison sentence based on the U.S. Federal Sentencing Guidelines for serious crimes, the judge acknowledged her valuable cooperation in other FTX-related cases.

The presiding judge noted Ms. Ellison's full cooperation with prosecutors during SBF's trial, including her meetings with government investigators over 30 times, providing reliable testimony, and submitting valuable documents for review beyond testifying against SBF.

Prosecutors even stated that Ms. Ellison's testimony was crucial for charging and subsequently convicting SBF, noting her collaboration with investigators just days after FTX declared bankruptcy.

In court, Ellison expressed regret for not being brave enough and apologized, stating she has been completely honest and open with prosecutors and investigators since FTX's collapse, a fact she finds comforting.

Notably, SBF also engaged in similar actions, sharing Ellison's personal diaries with investigators, leading to the exposure of some of her private information.

However, focusing on the crimes, as SBF's girlfriend and former CEO of Alameda Research, a cryptocurrency trading company affiliated with FTX, Ellison assisted SBF in defrauding investors and customers of billions of dollars. She was fully aware of SBF's fraudulent activities, preparing false financial data to exaggerate company assets and understate liabilities to secure more loans, and was involved in misappropriating $10 billion of FTX customer deposits.

Ultimately, Ms. Ellison was sentenced to 2 years in prison and fined $11 billion. Although the fine amount is astronomical, her sentence is significantly shorter than SBF's.