Caroline Ellison, a former high-ranking official in Sam Bankman-Fried’s defunct FTX cryptocurrency business, started her two-year prison sentence on Thursday due to her involvement in a fraudulent scheme that resulted in significant financial losses for investors, lenders, and customers.
At the age of 30, Ellison reported to the federal correctional facility in Danbury, Connecticut, as confirmed by the Federal Bureau of Prisons. She had previously pleaded guilty and provided extensive testimony against Bankman-Fried, who was her former boyfriend, prior to his conviction and subsequent 25-year prison sentence.
Despite the potential for a lengthy prison term, the prosecutor and the judge acknowledged Ellison’s cooperation in the case, giving her a lighter sentence. During her sentencing hearing in New York in September, she expressed her remorse, stating she was “deeply ashamed” of her actions.
Serving as the chief executive of Alameda Research, a cryptocurrency hedge fund owned by Bankman-Fried, Ellison played a key role in the operations surrounding FTX. Once one of the leading cryptocurrency exchanges globally, FTX was recognized for its marketing efforts, including a prominent Super Bowl advertisement, as well as its vigorous lobbying initiatives in Washington, D.C., before facing a dramatic collapse in 2022.
U.S. prosecutors have alleged that Bankman-Fried and several other executives misappropriated customer funds from the exchange to engage in risky investment strategies, make millions of dollars in unlawful political contributions, bribe officials in China, and acquire luxury properties in the Caribbean.
