<ul>
 <li>Caroline Ellison was sentenced to 24 months in prison for her role in the FTX fraud involving $10 billion.</li>  
 <li>Ellison cooperated with prosecutors and testified against FTX founder Sam Bankman-Fried in his fraud trial.</li>  
 <li>Ellison must forfeit $11 billion and is eligible for early release due to good behavior during her two-year sentence.</li> 
</ul>  
<p>Caroline Ellison, the ex-CEO of Alameda Research, received a 24-month prison sentence for her involvement in the FTX fraud. Ellison played a crucial role in the scandal that led to the downfall of FTX.</p>  
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  https://twitter.com/WatcherGuru/status/1838673811807273343
 </div>
</figure>  
<p>She confessed to doctoring paperwork to conceal Alameda's embezzlement of over $10 billion in customer funds. Even though she <a href="https://cryptonewsland.com/former-alameda-ceo-caroline-may-have-betrayed-sbf/" target="_blank" rel="noopener noreferrer nofollow">collaborated with prosecutors</a>, Judge Kaplan emphasized the gravity of the crime and mandated a prison term.</p>  
<h2 class="wp-block-heading" id="h-ellison-key-testimony-against-sam-bankman-fried"><strong>Ellison Key Testimony Against Sam Bankman-Fried</strong></h2>  
<p>Caroline collaborated extensively, even providing testimony against FTX's founder, Sam Bankman-Fried. Bankman-Fried was found guilty of committing fraud and multiple other charges last year, leading to his current imprisonment for a 25-year period. However, he has <a href="https://cryptonewsland.com/ftxs-sam-bankman-fried-seeks-new-trial-accuses-judge-kaplan-of-prejudicing-case/" target="_blank" rel="noopener noreferrer nofollow">appealed the sentencing</a>, citing the bias of the judge</p>  
<p>Ellison's testimony played a crucial role in exposing the mishandling of <a href="http://www.ftx.com/" target="_blank" rel="noopener noreferrer nofollow">FTX funds</a>. Even though she cooperated, Judge Kaplan pointed out that she was still involved in one of the biggest financial scams in American history.</p>  
<h2 class="wp-block-heading" id="h-judge-kaplan-s-ruling"><strong>Judge Kaplan’s Ruling</strong></h2>  
<p>Prosecutors had sought leniency for Ellison, citing her full cooperation. Her lawyers argued against a prison sentence, but the magnitude of the fraud influenced the final decision.&nbsp;</p>  
<p>Ellison, who pleaded guilty to seven counts in 2022, expressed deep regret for her actions. She acknowledged the immense harm caused and took full responsibility for her role in the scandal.</p>  
<h2 class="wp-block-heading" id="h-prison-term-and-financial-penalty"><strong>Prison Term and Financial Penalty</strong></h2>  
<p>Ellison will start serving her sentence on November 7. She is expected to be held in a minimum-security institution. Her cooperation and potential for good behavior may qualify her for early release before the end of her two-year term. She also has to forfeit $11 billion in addition to the sentence.</p>  
<p>After the FTX collapse, Ellison's sentencing is a significant event in the ongoing aftermath. It acts as a warning about the severe repercussions of financial fraud, even for those who fully comply with authorities.</p> 
<p>The post <a href="https://cryptonewsland.com/caroline-ellison-sentenced-to-two-years-for-role-in-ftx-fraud-despite-cooperation-with-prosecutors/" rel="noopener noreferrer nofollow">Caroline Ellison Sentenced to Two Years for Role in FTX Fraud Despite Cooperation with Prosecutors</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

Caroline Ellison Sentenced to Two Years for Role in FTX Fraud Despite Cooperation with Prosecutors

Table of Contents

Crypto News Land

Other articles published on Sep 25, 2024

Cardano Price Soars 30%, Breaking into Top 10 Amid Ethereum Dictatorship Allegations

Societe Generale Partners with Bitpanda to Boost Adoption of its Euro Stablecoin

Bitcoin price stuck in ‘extended consolidation phase’ due to drop in capital inflows — Report

70% of Top Advisors Own Crypto, Up From 20%, Bitwise Says

Hedera Joins MiCA Crypto Alliance with Ripple and Aptos, Launches Asset Tokenization Studio

ChatGPT pinpoints key altcoin set to eclipse top ranking cryptos BNB and Solana

Join our free newsletter for daily crypto updates!