Caroline Ellison, the former head of Alameda Research, has been sentenced to 24 months in a minimum-security prison on September 24. Ellison will report to prison on or after November 7.
Presiding over the case, Judge Lewis Kaplan also ruled that Ellison must forfeit an estimated $11 billion on fraud and money laundering charges, Bloomberg reported.
This ruling is related to her involvement in the downfall of the FTX crypto exchange.
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Despite facing a possible sentence of up to 110 years, Judge Kaplan showed leniency, citing Ellison's susceptibility while working under the influence of Sam Bankman-Fried, FTX's founder. He said to her:
You're a very strong person, Ms. Ellison, in some ways, but not inviolable. Mr. Bankman-Fried had your Kryptonite. You were vulnerable and you were exploited.
Ellison's testimony played a key role in strengthening the prosecution's case against Sam Bankman-Fried, with whom she had both personal and professional connections. The judge acknowledged:
I've seen a lot of cooperators in 30 years. I've never seen one quite like Ms. Ellison.
Her cooperation led the prosecution to recommend a lighter sentence, though Judge Kaplan rejected her defense team's request to limit her punishment to time served. The judge emphasized that cooperation was not a "get out of jail free card."
This sentencing follows other penalties related to FTX. In May, Ryan Salame, another former FTX executive, received a 90-month prison term. Earlier in March, Sam Bankman-Fried was sentenced to 25 years.
