Crypto Executive Caroline Ellison Sentenced to Two Years for Role in FTX Fraud

Former cryptocurrency executive Caroline Ellison was sentenced to two years in prison for her role in the FTX fraud led by Sam Bankman-Fried. Despite her cooperation with prosecutors, the judge emphasized the severity of the case, calling it one of the biggest financial frauds in U.S. history.

Former cryptocurrency executive Caroline Ellison was sentenced to two years in prison on Tuesday for her involvement in one of the biggest financial frauds in U.S. history, orchestrated by her ex-boyfriend Sam Bankman-Fried. U.S. District Judge Lewis Kaplan cited her extensive cooperation with prosecutors but rejected the notion that her remorse should absolve her from serving time.

Ellison, 29, admitted to seven felony counts of fraud and conspiracy and served as a critical witness against Bankman-Fried, who is now serving a 25-year sentence for the collapse of his FTX exchange. Despite the charges carrying a potential 110-year sentence, her cooperation led prosecutors and her defense to seek leniency.

Judge Kaplan acknowledged Ellison's role in helping to expose the fraud but highlighted the gravity of her actions. He expressed confidence that she would not reoffend and ordered her to a minimum-security prison starting in November. Ellison could be released a few months early for good behavior.

(With inputs from agencies.)