By Axios | Created at 2024-09-24 21:00:49 | Updated at 2024-09-30 07:36:13
5 days ago
Caroline Ellison was sentenced on Tuesday to two years in prison by a federal judge in New York, for her role in the FTX cryptocurrency scandal.
Why it matters: Ellison arguably was the most important witness in the prosecution of FTX founder Sam Bankman-Fried, and her relatively lenient sentence reflected her cooperation.
- "I've seen a lot of cooperators in 30 years. I've never seen one quite like Ms. Ellison," Judge Lewis Kaplan said.
Catch up quick: Ellison was SBF's one-time girlfriend of and also CEO of the first company he founded, hedge fund Alameda Resarch.
- She talked to the government prior to Bankman-Fried's arrest, and one month after FTX's collapse, according to a court filing.
- SBF was sentenced to 25 years in prison, and has filed an appeal.
Zoom in: Ellison detailed how SBF directed her to prepare fake balance sheets to send to her lenders.
- She became emotional in court, revisiting their time as a couple. "I sort of wanted more from our relationship but often felt like he was distant or not paying attention to me," she testified.
What they're saying: "Not a day goes by that I don't think about all of the people I hurt," Ellison told the court, "I participated in a criminal conspiracy that ultimately stole billions of dollars from people who entrusted their money with us."
- "I'm sorry I wasn't brave," she added.
- Her attorneys said that Ellison has agreed to divest all profits she made from the scheme and continues to support prosecutors and recovery efforts.
The bottom line: The judge, prosecutors and defense attorneys all emphasized the value of lenient sentencing for cooperating witnesses.
Go deeper: Behind SBF's meteoric rise and fall
