Caroline Ellison, former CEO of Alameda Research, began serving a two-year sentence in a Connecticut federal prison for her role in the FTX fraud case. She was ordered to forfeit $11 billion for her involvement in misappropriating funds from FTX customer accounts, which amounted to approximately $8 billion.
As key witness against FTX founder Sam Bankman-Fried, who received a 25-year prison sentence, Ellison’s cooperation with authorities played a significant role in the case. Despite recommendations for no prison time, Judge Lewis Kaplan determined that a custodial sentence was necessary to deter future financial crimes.
