Caroline Ellison, a key accomplice in the collapse of the cryptocurrency exchange FTX, has been sentenced to 24 months in prison. The sentencing, handed down by U.S. District Judge Lewis Kaplan, who also oversaw the trial of FTX founder Sam Bankman-Fried, drew attention not only for the length of the sentence but also for the judge’s remarks.
Judge Kaplan acknowledged the intense public scrutiny that Ellison has faced since the FTX scandal unfolded. He expressed hope that this scrutiny would lessen after her sentencing, stating, “Every part of your life has turned inside out and public to an unusual degree. And now that’s probably, hopefully, going to relax.”
Despite the public backlash, Kaplan lauded Ellison’s cooperation in the case, highlighting her significant contribution to the prosecution. In his 30 years on the bench, he stated that he had “never seen one quite like” her. He noted the complete consistency of her testimony, a stark contrast to the behavior of Bankman-Fried.
However, even with Ellison’s extensive cooperation, Judge Kaplan emphasized that she still needed to serve time in prison. “You are genuinely remorseful,” he acknowledged, but added that the severity of the crimes required a sentence, even with her assistance.
Ellison’s legal team had argued for leniency, citing her testimony and the emotional toll she endured due to her on-and-off relationship with Bankman-Fried. Ellison herself had admitted her role in the FTX scandal nearly two years ago and provided crucial evidence against Bankman-Fried in his trial last November.
Bankman-Fried, once dubbed a “crypto white knight,” saw his fortunes drastically change following the collapse of FTX in November 2024. Federal prosecutors alleged that Bankman-Fried misappropriated an astounding $8 billion worth of customer cryptocurrency funds. The scandal shook the cryptocurrency world, highlighting the vulnerability of the industry to fraud and mismanagement.
