Caroline Ellison is sentenced to 2 years in prison in the FTX case

Former executive Caroline Ellison, who was involved in one of the biggest cryptocurrency scandals in history, received her sentence from the U.S. justice system this Tuesday. Judge Lewis Kaplan sentenced Caroline Ellison to two years in prison, acknowledging her cooperation with authorities, but making it clear that no cooperation provides a “get-out-of-jail-free card” for crimes of such magnitude.

Cooperation with authorities resulted in reduced sentence

Despite facing charges that could result in up to 110 years in prison — including electronic fraud and money laundering — Caroline Ellison ended up receiving a significantly lighter sentence. The decision reflected the crucial role she played in the investigation, providing information that led to the conviction of Sam Bankman-Fried, founder of the FTX exchange, who is now serving 25 years.

The U.S. assistant prosecutor acknowledged that a lenient sentence was appropriate, considering the services provided during the investigations. Caroline Ellison admitted her involvement in the crimes from the beginning, greatly facilitating the prosecutors’ work.

Key revelations from Caroline Ellison against SBF

During Sam Bankman-Fried’s trial, Caroline Ellison provided detailed testimony about how she was instructed to manipulate Alameda Research’s financial records. She revealed that the company had unrestricted access to customer deposits at FTX — a fact that became central to understanding the catastrophic collapse of the exchange.

These revelations were crucial in building the case against Bankman-Fried and demonstrated the true scale of the fraudulent operations happening behind the scenes at FTX. Caroline Ellison also admitted her complicity in schemes that led to the disappearance of billions of dollars from users and investors.

Demonstrated remorse during the trial

During the judicial proceedings, Caroline Ellison showed visible signs of remorse and emotion. Clearly tearful, she expressed that she thinks about the victims of her actions every day, apologizing to those who suffered from the fraud.

Her lawyer argued that, at 29 years old, she still has the opportunity to regain her moral path and contribute positively to society. However, Judge Kaplan remained firm: despite cooperation and demonstrated remorse, a sentence was necessary as a consequence of the crimes committed.

Financial restitution and future

In addition to the prison sentence, Caroline Ellison will have to return approximately US$ 11 billion — an amount corresponding to the losses of investors and platform users. She is expected to serve her sentence in a minimum-security facility, where she can reflect on her actions.

The case of Caroline Ellison marks an important milestone in the history of cryptocurrency crimes, showing that even those who cooperate with justice do not escape significant consequences. Her example served as a key piece in dismantling one of the largest fraudulent schemes in the digital assets sector.