Bankman-Fried accomplice Caroline Ellison sentenced in FTX fraud

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.

Defense attorneys also requested that Allison, who once ran Alameda Research, a hedge fund linked to FTX, be spared 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.

“I can't agree to a real get-out-of-jail-free card,” Kaplan said in U.S. District Court in Manhattan.

“I've met a lot of collaborators over the years, but I've never met anyone like Miss Allison,” Kaplan said. He also said he believed Allison was sincerely remorseful for her crimes and the dedication of her cooperation Paying a high price for her emotions.

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

In contrast, Bankman-Fried chose to go to trial and was found guilty of all seven criminal fraud charges in the same court where she was sentenced.

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.

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