Ex-Alameda Research CEO to report to prison for 2-year sentence

As a seasoned crypto investor who has witnessed the rise and fall of numerous digital assets and exchanges, I can’t help but feel a sense of melancholy upon hearing about Caroline Ellison’s impending prison sentence. The FTX saga is undeniably one of the most dramatic episodes in our young industry’s history, and Ellison was an integral part of it all.


Caroline Ellison, the former chief executive of Alameda Research, will begin serving her two-year prison term starting from November 7, due to her involvement in criminal activities at the digital currency trading platform, FTX.

Initially, when the Federal Bureau of Prisons (BOP) website was last updated, it indicated that Ellison was not currently detained. However, it did provide some details such as her inmate number, age, race, and gender. Later on, September 24th, Judge Lewis Kaplan from the United States District Court for the Southern District of New York handed down a two-year prison sentence to Ellison. She is expected to report to prison no sooner than November 7th.

Ex-Alameda Research CEO to report to prison for 2-year sentence

As per Judge Kaplan’s ruling, Ellison was directed to report to a correctional facility by 2:00 pm Eastern Time on November 7th. It is anticipated that the ex-CEO of Alameda will give herself up at a minimum security facility situated close to Boston, implying that she might serve her sentence at the Federal Correctional Institution in Danbury, Connecticut, which accommodates both male and female prisoners.

Ellison is set to become the third person mentioned in the indictment of FTX and Alameda executives to serve prison time after the trial and conviction of Sam Bankman-Fried, the former CEO of FTX, and Ryan Salame’s guilty plea for his role as co-CEO of FTX Digital Markets. Judge Kaplan previously sentenced Nishad Singh, a former engineering director at FTX, to time served in October.

In 2022, following the downfall of FTX, Ellison admitted her guilt in connection with seven charges: wire fraud, commodities fraud, securities fraud, and money laundering, all related to improper handling of user funds between the crypto exchange and Alameda. She also took the stand at Bankman-Fried’s 2023 criminal trial, a former romantic partner of hers, leading to a conviction on all charges.

‘Mocked in memes’ and other harassment on and offline

Apart from Bankman-Fried, Ellison was undeniably one of the most recognized figures associated with the FTX crisis in November 2022. During this time, the exchange encountered a liquidity problem, resulting in the CEO’s resignation and the company filing for bankruptcy. Prosecutors pointed out in their September sentencing memorandum that Ellison had been under significant scrutiny and unwanted public/media attention.

Although it’s reasonable that a defendant or cooperative individual faces public examination of their past criminal activities, Ellison experienced much more than this,” stated the US government filing. “She was besieged by the media outside the courthouse for interviews and photos, which made it challenging to enter and exit without protection. Her physical appearance was subjected to scrutiny and criticism, and she became a target of mockery in memes and other social media content.

It’s expected that Gary Wang, one of the co-founders of FTX, will appear before Judge Kaplan for sentencing last among those indicted. Similarly to Singh, Wang has requested the court to impose a sentence equivalent to the time he has already served after pleading guilty, and in exchange for his testimony during Bankman-Fried’s trial. His sentencing is scheduled for November 20th.

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2024-11-07 19:54