FTX’s Caroline Ellison reports to prison to begin 2-year sentence | Real Time Headlines

carolyn allisonStar Witness in Prosecution of FTX Founder Sam Bankman-FreedThe incident was reported Thursday to a low-security federal prison in Connecticut, according to a Bureau of Prisons spokesman.

SeptemberEllison was sentenced to two years in prison for his role in the massive incident and ordered to forfeit $11 billion. Fraud And a conspiracy doomed to destruction cryptocurrency exchange It was once valued at US$32 billion.

Federal Probation Department Recommendations Judge Lewis Kaplan Allison was sentenced to three years of supervised release without the possibility of jail time. Defense attorneys also asked for a penalty that did not include jail time.

Kaplan praised Ellison’s extensive cooperation with prosecutors, which led to conviction Judge Bankman Fried said her criminal sentence was needed to deter other potential bad actors from committing the fraud.

Allison ran away Alameda Research CenterIt is a sister hedge fund of FTX. She was also in a relationship with Bankman-Fried.

Alameda received the majority of the $8 billion in customer funds that Bankman-Fried looted from FTX. The stolen funds were used in Alameda’s trading operations and for other purposes.

Allison reached Plea agreement reached with prosecutors in December 2022FTX fell into bankruptcy a month later. she confessed Conspiracy and financial fraud charges.

Kaplan called FTX the largest financial fraud in U.S. history and told a Manhattan courtroom during sentencing, “I can’t agree to a real get-out-of-jail-free card.”

“I have met many collaborators over the years, but I have never met anyone like Miss Allison,” Kaplan said. He also said he believed Allison was sincerely remorseful for her crimes and that her cooperation allowed her to Miss Allison paid a high price.

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

At the sentencing, Allison read a statement in a trembling voice, at times crying, apologizing to those she had hurt and saying she was deeply ashamed. She also said she was sorry for not having the courage to leave FTX and Bankman-Fried.

Kaplan granted Ellison bail until he surrenders to jail on or after Nov. 7.

Bankman-Fried chose to stand trial and was All seven were found guilty Criminal fraud charges were filed against him. he is Sentenced to 25 years in prison He was jailed in March and ordered by Kaplan to forfeit $11 billion.

Bankman-Fried and Allison both face the same statutory maximum sentence for their crimes, about 110 years in prison.

watch: FTX founder Sam Bankman-Fried appeals fraud conviction