A district court judge sentenced Alameda Research CEO Caroline Ellison to two years in prison and issued a $11 billion fine.
Caroline Ellison, former Alameda Research CEO, was handed a 24-month sentence on September 24 for her role in FTX’s collapse. Alameda Research and FTX were closely intertwined in their operations, working in tandem to misappropriate user funds. Sam Bankman-Fried co-founded Alameda in 2017 and controlled about 90% of the firm.
Judge Lewis Kaplan of the District Court of Southern New York handed the two-year sentence while imposing a $11 billion fine on her—an amount she earned from FTX. The judge said Ellison’s surrender date will be set on or after November 7.
Ellison’s Light Sentence Comes Due to Her Exceptional Cooperation
Some may consider this a light sentence, but the judge applauded Ellison for being highly cooperative in the case. Her lawyers requested Kaplan to offer zero jail time. However, he said, “You’re a very strong person, Ms. Ellison, in some ways, but not inviolable,” adding, “Mr. Bankman-Fried had your Kryptonite. You were vulnerable and you were exploited.”
The two-year sentence is a big relief to Ellison as she could have faced 110 years in prison. A Bloomberg report noted that Ellison clasped her hands as she nodded to the sentencing. She will be sent to a minimum-security facility to serve her sentence.
The prosecution against Ellison occurred seamlessly due to Excel sheets she shared with Friedman-Fried, which acted as irrefutable evidence of her involvement with the FTX founder. “When Mr. Bankman-Fried was first asked about it at the trial.” The judge contrasted Ellison’s admissions in court, stating Bankman-Fried “was the opposite.” In fact, Judge Kaplan was so amazed by Ellison’s cooperation that he said, “I’ve seen a lot of cooperators in 30 years. I’ve never seen one quite like Ms. Ellison.”
