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You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/caroline-ellison-begins-serving-prison-sentence-for-role-in-ftx-fraud/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Caroline Ellison Begins Serving Prison Sentence for Role in FTX Fraud</a> 
Caroline Ellison, a key witness in the trial against Sam Bankman-Fried, former CEO of Alameda Research and founder of FTX, was transferred to a federal prison in Connecticut on Thursday. Her testimony played a significant role in the proceedings, shedding light on the inner workings of the fraudulent activities surrounding FTX.
<h2 id="ftx-sentencing">FTX Sentencing</h2>
In September, the court sentenced Ellison to two years in prison and ordered the forfeiture of $11 billion due to her involvement in the multi-billion dollar fraud. This scheme ultimately led to the collapse of a <a href="https://en.coin-turk.com/analysts-discuss-bitcoin-market-trends-and-future-predictions/" data-wpel-link="internal" rel="noopener noreferrer nofollow">cryptocurrency</a> exchange that had once been valued at $32 billion.
The collapse in November 2022 caused sleepless nights for many cryptocurrency investors. Those who suffered massive losses during this period were skeptical that Bankman-Fried and his accomplices would receive the punishment they deserved. However, all responsible parties faced justice in court.
<h2 id="ellison-s-role-in-ftx">Ellison’s Role in FTX</h2>
While heading Alameda Research, Ellison was central to the misappropriation of $8 billion from FTX customers, which was funneled into high-risk trades and other business activities. This money belonged to clients who had deposited funds on the FTX platform for trading.
<blockquote>
 “Ellison does not resemble the accomplices I’ve seen over the years.” – Judge Kaplan.
</blockquote>
Judge Kaplan noted that Ellison expressed remorse in court, crying as she reflected on her relationship with Bankman-Fried that led her to remain in her position at FTX.
Bankman-Fried, who rejected a plea deal, opted for trial and was convicted on seven fraud charges earlier this year. Judge Kaplan sentenced him to 25 years in prison and ordered the restitution of $11 billion.
Additionally, Kaplan granted the U.S. government until January 15, 2025, to negotiate the return of $13.25 million in donations related to FTX to Democrat-aligned PACs. Ellison’s start of her prison term marks one of the critical steps following FTX’s downfall and highlights the stark contrast as Bitcoin stabilizes at all-time highs.
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Caroline Ellison Begins Serving Prison Sentence for Role in FTX Fraud

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