FTX’s Caroline Ellison reports to prison to begin 2-year sentence | Wilnesh News

Caroline Ellison, the star witness in the prosecution of FTX founder Sam Bankman-Fried, reported to a low-security federal prison in Connecticut on Thursday, according to a Bureau of Prisons spokesman.

In September, Ellison was sentenced to two years in prison and ordered to forfeit $11 billion for his role in the massive fraud and conspiracy that doomed the cryptocurrency exchange, once valued at $32 billion.

The federal Probation Department recommended that Judge Lewis Kaplan sentence Ellison to three years of supervised release with no jail time. Defense attorneys also asked for a penalty that did not include jail time.

While Kaplan praised Allison for her extensive cooperation with prosecutors – which led to Bankman-Fried’s conviction – the judge said her criminal sentence was needed to deter other potential bad actors from committing the fraud.

Allison runs Alameda Research, a sister hedge fund to FTX. She was also in a relationship with Bankman-Fried.

Alameda received the majority of the $8 billion in customer funds that Bankman-Fried looted from FTX. The stolen funds were used in Alameda’s trading operations and for other purposes.

Allison reached Plea agreement reached with prosecutors in December 2022FTX fell into bankruptcy a month later. she confessed Conspiracy and financial fraud charges.

Kaplan called FTX the largest financial fraud in U.S. history and told a Manhattan courtroom during sentencing, “I can’t agree to a real get-out-of-jail-free card.”

“I have met many collaborators over the years, but I have never met anyone like Miss Allison,” Kaplan said. He also said he believed Allison was sincerely remorseful for her crimes and that her cooperation allowed her to Miss Allison paid a high price.

Late last month, former FTX executive Nishad Singh was sentenced to prison time and three years of supervised release, becoming the fourth former employee of the collapsed cryptocurrency exchange to be punished.

At the sentencing, Allison read a statement in a trembling voice, at times crying, apologizing to those she had hurt and saying she was deeply ashamed. She also said she was sorry for not having the courage to leave FTX and Bankman-Fried.

Kaplan granted Ellison bail until he surrenders to jail on or after Nov. 7.

Bankman-Fried elected to stand trial and was found guilty of all seven criminal fraud charges brought against him. In March, he was sentenced by Kaplan to 25 years in prison and ordered to forfeit $11 billion.

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

watch: FTX founder Sam Bankman-Fried appeals fraud conviction