Bankman-Fried co-conspirator Caroline Ellison sentenced for FTX fraud | Wilnesh News

Caroline Ellison, the star witness in the prosecution of her ex-boyfriend and FTX founder Sam Bankman-Fried, was sentenced to two years in prison in New York federal court on Tuesday. and was fined $11 billion for participating in massive fraud and conspiracy.

The sentence is significantly harsher than federal probation judge Lewis Kaplan’s recommendation to sentence Allison to three years of supervised release without any time in jail. Ellison’s attorneys also asked for no jail time.

Allison previously ran Alameda Research, a hedge fund related to FTX. Agree to plea deal in December 2022FTX fell into bankruptcy a month later.

Allison, 29, pleaded guilty. Conspiracy and financial fraud charges.

Bankman-Fried, by contrast, chose to go to trial and was found guilty of all seven criminal fraud charges in U.S. District Court in Manhattan.

In March, he was sentenced to 25 years in prison and ordered to forfeit $11 billion.

Bankman-Fried has since appealed his conviction and requested a new trial and a different judge, arguing that Kaplan was biased against him.

Late Monday, Ellison’s attorneys said in a court filing that they had reached a financial settlement with prosecutors and the estate of FTX’s debtor.

Bankman-Fried and Allison both face the same statutory maximum sentence for their crimes, about 110 years in prison.

But defendants in criminal cases who cooperate with prosecutors rather than fight, especially in white-collar cases like FTX, often receive leniency when sentenced.

This is breaking news. Please check back for updates.