Caroline Ellison, former CEO of Alameda Research, has been sentenced to 24 months in prison for her role in the FTX fraud case. Her cooperation with prosecutors was instrumental in securing the conviction of Sam Bankman-Fried, the FTX founder. The sentence highlights the consequences of financial misconduct in the cryptocurrency industry.
The Biden Victory Fund has returned a $50,000 donation from Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX. Bankman-Fried, who was sentenced to 25 years in prison last month for stealing $8 billion from customers, donated to Biden in 2022. Since April 2023, the U.S. Marshals Service has collected over $2.35 million in FTX donations from over 150 political campaigns and committees. Other politicians and organizations that have returned FTX donations include the Democratic National Committee, the National Republican Senatorial Committee, and the campaign of Rep. Abigail Spanberger (D-VA).
Sam Bankman-Fried, the former CEO of the failed cryptocurrency exchange FTX, is set to cooperate with a class-action lawsuit filed by investors and customers who lost money when the company collapsed. Bankman-Fried has agreed to assist in prosecuting celebrities who endorsed FTX, including Tom Brady, Larry David, Stephen Curry, Shaquille O’Neal, and Naomi Osaka. The lawsuit alleges that the celebrities promoted FTX without disclosing that they were paid by Bankman-Fried, and that they are therefore liable for some of the losses incurred by investors.
