• Caroline Ellison, the star witness in the prosecution of FTX founder Sam Bankman-Fried, showed up at a low-security federal prison in suburban Connecticut.
• Ellison was sentenced to two years in prison and ordered to forfeit $11 billion.
• Ellison, who ran the FTX-affiliated Alameda Research hedge fund, agreed to a plea deal in December 2022, a month after the cryptocurrency exchange fell into bankruptcy.

Carolina Ellisonthe star witness in the prosecution of the founder of FTX Sam Bankman-Fritoreported Thursday at a low-security federal prison in Connecticut, according to a Bureau of Prisons spokesman.

in septemberEllison was sentenced to two years in prison and ordered to forfeit $11 billion for her role in the massive fraud and conspiracy that condemned the cryptocurrency exchange once valued at $32 billion.

The federal Probation Department had recommended that Judge Lewis Kaplan He sentences Ellison to three years of supervised release, with no time behind bars. Defense attorneys had also requested a sentence that did not include prison time.

While Kaplan praised Ellison for his extensive cooperation with prosecutors, which led to the conviction Bankman-Fried: The judge said her criminal sentence was supposed to deter other potential bad actors from committing fraud.

ellison ran Alameda Investigationwhich was a sister hedge fund of FTX. She also had a romantic relationship with Bankman-Fried.

Alameda received much of the $8 billion in client funds looted by FTX’s Bankman-Fried. The stolen money was used for Alameda’s business operations and other purposes.

Ellison reached a plea agreement with prosecutors in December 2022a month after FTX fell into bankruptcy. she pleaded guilty to charges of conspiracy and financial fraud.

Kaplan called FTX the largest financial fraud perpetrated in U.S. history, and told the Manhattan court during sentencing that “I can’t accept a literal get-out-of-jail-free card.”

“I have seen many cooperators over the years and I have never seen one like Ms. Ellison,” said Kaplan, who also said he believed Ellison was genuinely remorseful for her crimes and that her cooperation took a heavy toll on her emotionally. .

Late last month, former FTX executive Nishad Singh was sentenced to time served and three years of supervised release, becoming the fourth former employee of the collapsed crypto exchange to be punished.

At her sentencing, Ellison read a statement, her voice shaking as she cried at times while apologizing to people she had hurt and saying she was deeply ashamed. He also said he regretted not being brave enough to walk away from FTX and Bankman-Fried.

Kaplan allowed Ellison to remain free on bail until he surrendered to prison on Nov. 7 or later.

Bankman-Fried chose to stand trial and was condemned by the seven criminal fraud charges against him. he was sentenced to 25 years in prison in March and Kaplan also ordered him to pay $11 billion in forfeiture.

Both Bankman-Fried and Ellison had faced the same maximum legal penalty of about 110 years in prison for their crimes.

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