Caroline Ellison, the star witness in the criminal trial of FTX founder Sam Bankman-Fried, has been sentenced to two years in prison for her role in what prosecutors called one of the largest financial frauds in history.
Ellison, the former head of FTX’s sister investment firm Alameda Research, pleaded guilty in late 2022 to seven counts of fraud and money laundering related to the cryptocurrency exchange’s collapse. In testimony over three days, she confessed to helping Bankman-Fried divert billions of dollars of client funds to cover Alameda’s risky bets.
Her testimony helped put her ex-boyfriend and boss away for 25 years. She had hoped that her cooperation with federal prosecutors would have allowed her to avoid spending time behind bars.
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