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.
FTX Sentencing
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 cryptocurrency 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.
Ellison’s Role in FTX
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.
“Ellison does not resemble the accomplices I’ve seen over the years.” – Judge Kaplan.
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 
$98,092 stabilizes at all-time highs.
