Caroline Ellison, the former head of Alameda Research, has been sentenced to 24 months in a minimum-security prison on September 24. Ellison will report to prison on or after November 7.
Presiding over the case, Judge Lewis Kaplan also ruled that Ellison must forfeit an estimated $11 billion on fraud and money laundering charges, Bloomberg reported.
This ruling is related to her involvement in the downfall of the FTX crypto exchange.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is IOTA's Tangle? IOTA & mIOTA Animated Explainer
Despite facing a possible sentence of up to 110 years, Judge Kaplan showed leniency, citing Ellison's susceptibility while working under the influence of Sam Bankman-Fried, FTX's founder. He said to her:
You're a very strong person, Ms. Ellison, in some ways, but not inviolable. Mr. Bankman-Fried had your Kryptonite. You were vulnerable and you were exploited.
Ellison's testimony played a key role in strengthening the prosecution's case against Sam Bankman-Fried, with whom she had both personal and professional connections. The judge acknowledged:
I've seen a lot of cooperators in 30 years. I've never seen one quite like Ms. Ellison.
Her cooperation led the prosecution to recommend a lighter sentence, though Judge Kaplan rejected her defense team's request to limit her punishment to time served. The judge emphasized that cooperation was not a "get out of jail free card."
This sentencing follows other penalties related to FTX. In May, Ryan Salame, another former FTX executive, received a 90-month prison term. Earlier in March, Sam Bankman-Fried was sentenced to 25 years.
