• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Caroline Ellison, former FTX exec, sentenced to 2 years in prison
Editor's Pick

Caroline Ellison, former FTX exec, sentenced to 2 years in prison

by September 25, 2024
by September 25, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Caroline Ellison, whose testimony helped convict her former boss and ex-boyfriend, disgraced cryptocurrency mogul Sam Bankman-Fried, was sentenced Tuesday to two years in prison for fraud and conspiracy.

U.S. District Judge Lewis A. Kaplan sentenced Ellison in New York City to 24 months and ordered her to forfeit $11 billion for her involvement in the collapse of Bankman-Fried’s crypto exchange company, FTX. She had faced a maximum sentence of about 110 years.

Ellison, 29, accepted a plea deal on charges of conspiracy and financial fraud in December 2022, a month after FTX spiraled into bankruptcy. She testified against Bankman-Fried for nearly three days at his trial in November.

Bankman-Fried was convicted of all seven criminal fraud charges against him and sentenced to 25 years in prison. Prosecutors said in a court filing that Ellison’s testimony was the ‘cornerstone of the trial.’

Lawyers for Ellison had asked that she be sentenced to time served and supervised release, citing her cooperation. In a court document filed this month, her lawyers said she made a swift return to the U.S. in 2022 from FTX’s headquarters in the Bahamas and voluntarily cooperated with the U.S. attorney’s office.

Caroline Ellison leaves the courthouse in New York on Oct. 12. Stephanie Keith / Bloomberg via Getty Images file

She willingly worked with financial regulators in helping them understand what went wrong at FTX and at Alameda Research, FTX’s sister hedge fund, which she ran, the document said.With an unlimited credit line from FTX, Alameda Research received much of the $8 billion in FTX customer funds looted by Bankman-Fried, according to federal prosecutors. He used it for personal expenses, trading, Alameda debt payments and political contributions, Ellison and other witnesses alleged.

In seeking a sentence of time served, defense attorney Anjan Sahni said Ellison has “recovered her moral compass” and “profoundly regrets” not having left Bankman-Fried’s orbit.

Ellison addressed the court by reading from a statement in which she apologized to those she hurt and expressed shame for her part in the saga.

But Kaplan, describing FTX’s collapse as possibly the greatest financial fraud uncovered in U.S. history, said he could not agree to a “literal get-out-of-jail-free card’ for the defendant.

He ordered her to surrender to authorities on or after Nov. 7.

In the 67-page court document filed Sept. 10, FTX CEO John Ray, who has been guiding the crypto firm through bankruptcy proceedings, said Ellison’s cooperation with the government was ‘valuable’ in helping his team preserve and protect ‘hundreds of millions of dollars’ in assets.

Her lawyers wrote that Bankman-Fried forced her into a sort of isolation that ‘warped’ her moral compass. They said that at his direction, Ellison helped ‘steal billions’ while she lived ‘in dread, knowing that a disastrous collapse was likely, but fearing that disentangling herself would only hasten that collapse.’ Her work relationship with Bankman-Fried was further complicated by their on-and-off romantic relationship.

Ellison’s lawyers said Bankman-Fried had persuaded her to stay by telling her that he loved her and that she was essential to the business’ survival ‘while also perversely demonstrating that he considered her not good enough to be seen in public with him at high-profile events.’

Before it collapsed in 2022, FTX was one of the world’s most popular cryptocurrency exchanges, was known for its extensive lobbying campaign in Washington and its Super Bowl commercial.

Bankman-Fried and other top executives were accused of looting customer accounts on the exchange to make risky investments, buy luxury real estate in the Caribbean, make millions of dollars in illegal political donations and bribe Chinese officials.

Ryan Salame, a former top lieutenant of Bankman-Fried, was the first of the FTX executive team to be sentenced. In May, a judge handed down a 7½-year prison sentence and ordered him to pay more than $6 million in forfeiture and more than $5 million in restitution.

Two other former executives, Nishad Singh and Gary Wang, will be sentenced in October and November, respectively.

This post appeared first on NBC NEWS
You Might Also Like
  • Bissell recalls 3.2 million handheld steam cleaners after scores of burn injury reports
  • Disney debuts its latest cruise ship, Treasure, as part of a plan to double its fleet by 2031
  • Nvidia CEO Jensen Huang’s net worth swells from $3 billion to $90 billion in five years
  • Netflix ad-supported tier has 40 million monthly users, nearly double previous count
Share
0
FacebookTwitterPinterestWhatsapp

previous post
ApeCoin and Akita Inu: Price and Target Overview
next post
China Stimulus Energizes Stocks, Commodities; Will The Energy Sink?

You may also like

‘It is time to break up Live Nation’: DOJ sues...

May 24, 2024

Economic uncertainty reigns as the grip of inflation persists

April 10, 2024

South Florida braces for Messi debut — and the possibility...

July 22, 2023

How Volvo landed a cheap Chinese EV on U.S. shores...

April 26, 2024

JPMorgan to pay $75 million to settle lawsuit over ties...

September 27, 2023

Feds decline to recall vulnerable Hyundai and Kia vehicles despite...

June 29, 2023

U.S. airlines cool hiring after adding 194,000 employees in post-Covid...

September 9, 2024

What the Ticketmaster-Live Nation lawsuit could mean for fans of...

May 25, 2024

An interest rate cut is coming. Here’s what to do...

August 10, 2024

Rite Aid is closing more than 150 stores as part...

October 19, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025
    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,631 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,577 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,451 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters...

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    How the Inflation Reduction Act sparked...

    August 20, 2024

    Baby boomers and their cash are...

    July 9, 2023

    Boeing to cut 17,000 jobs as...

    October 14, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here