NEW YORK (AP) 鈥� Caroline Ellison, a former top executive in 鈥檚 fallen FTX cryptocurrency empire, was sentenced to two years in prison on Tuesday after she apologized to everyone hurt by a fraud that stole billions of dollars from investors, lenders and customers.
Ellison, 29, could have faced a much tougher sentence, but both the judge and prosecutors said she deserved credit for talking extensively with federal investigators, pleading guilty and ultimately testifying against Bankman-Fried for three days at his trial last November.
U.S. District Judge Lewis A. Kaplan said Ellison's cooperation was 鈥渧ery, very substantial鈥� and 鈥渞emarkable.鈥�
But he said a prison sentence was necessary because she had participated in what might be the 鈥済reatest financial fraud ever perpetrated in this country and probably anywhere else鈥� or at least close to it.
Ellison was ordered to report to prison Nov. 7.
FTX was one of the world鈥檚 most popular cryptocurrency exchanges, known for its Superbowl TV ad and its extensive lobbying campaign in Washington, before it collapsed in 2022.
U.S. prosecutors accused Bankman-Fried and other top executives of looting customer accounts on the exchange to make risky investments, make millions of dollars of illegal political donations, bribe Chinese officials and buy luxury real estate in the Caribbean.
Ellison was chief executive at Alameda Research, a cryptocurrency hedge fund controlled by Bankman-Fried.
鈥淚鈥檓 deeply ashamed with what I鈥檝e done,鈥� she said at the sentencing hearing, fighting through tears to say she was 鈥渟o so sorry鈥� to everyone she had harmed directly or indirectly.
She did not speak as she left Manhattan federal court, surrounded by lawyers.
In court Tuesday, Assistant U.S. Attorney Danielle Sassoon called for leniency, saying Ellison's testimony was 鈥渄evastating and powerful proof鈥� against Bankman-Fried, 32, who was of fraud and sentenced to 25 years in prison.
Attorney Anjan Sahni asked the judge to spare his client from prison, citing 鈥渦nusual circumstances,鈥� including her off-and-on romantic relationship with Bankman-Fried and the damage caused when her 鈥渨hole professional and personal life came to revolve鈥� around him.
Judge Kaplan agreed that Ellison's willingness to work with prosecutors was extraordinary.
鈥淚鈥檝e seen a lot of cooperators in 30 years here. I鈥檝e never seen one quite like Ms. Ellison,鈥� he said.
But he said that in such a serious case, he could not let cooperation be a get-out-of-jail-free card, even when it was clear that Bankman-Fried had become 鈥測our kryptonite.鈥�
Bankman-Fried also testified at the trial, portraying himself to the jury as inexperienced and bumbling but not a criminal. He acknowledged making mistakes, but said he didn't defraud anyone and wasn't aware that Alameda Research had amassed billions of dollars in debt.
Sassoon, the prosecutor, described that testimony in court Tuesday as 鈥渆vasive, even contemptuous.鈥�
As the business began to falter, Ellison divulged the massive fraud to employees who worked for her even before , trial evidence showed.
Ultimately, she also spoke extensively with criminal and civil U.S. investigators.
Sassoon said prosecutors were impressed that Ellison did not 鈥渏ump into the lifeboat鈥� to escape her crimes but instead spent nearly two years fully cooperating.
Since testifying at Bankman-Fried鈥檚 trial, Ellison has engaged in extensive charity work, written a novel and worked with her parents on a math enrichment textbook for advanced high school students, according to her lawyers.
They said she also now has a healthy romantic relationship and has reconnected with high school friends she had lost touch with while she worked for and sometimes dated Bankman-Fried from 2017 until late 2022.
Larry Neumeister, The Associated Press
