Caroline Ellison, the former CEO of Alameda Research, has been sentenced to 24 months in prison for her role in the collapse of FTX, a company once seen as a titan in the cryptocurrency world.

Her cooperation with federal prosecutors earned her a significantly lighter sentence than the 110 years she could have faced for her involvement in one of the largest financial fraud cases in U.S. history. Ellison, who was a key figure in FTX’s inner circle, testified against former FTX founder Sam Bankman-Fried, describing in detail how the company’s assets were misused.

Ellison’s cooperation was critical in the conviction of Bankman-Fried, who was sentenced to 25 years in prison earlier this year. Despite her cooperation, the judge ruled that her involvement in the fraud still warranted prison time.

Her sentence also includes the forfeiture of approximately $11 billion gained during her time at Alameda Research.

Federal prosecutors highlighted Ellison’s extensive cooperation, stating that her actions helped bring to justice key figures behind the fraudulent operation. She apologized to victims, acknowledging the significant financial harm caused by FTX’s collapse, which wiped out billions from investors’ pockets​. Despite her sentence, Ellison continues to assist federal authorities in ongoing investigations.

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