Caroline Ellison Begins Prison Sentence

Caroline Ellison started her two-year prison sentence on Thursday for her involvement in the collapse of cryptocurrency exchange FTX, resulting in significant customer losses.

The Federal Bureau of Prisons confirmed to The Block that Ellison is in custody at the Federal Correctional Institution Danbury, a low-security prison in Connecticut, housing 1,252 inmates.

Ellison was the co-CEO of Alameda Research, which had closer ties to FTX than previously known. She is also the ex-girlfriend of former FTX CEO Sam Bankman-Fried, who founded both FTX and Alameda Research.

In December 2022, Ellison pled guilty to multiple charges, including wire fraud and conspiracy to commit money laundering. As part of her sentencing in September, she agreed to forfeit approximately $11 billion and expressed her remorse for the harm caused to her victims, stating, “not a day goes by that I don’t think about all of the people I hurt.”

Ellison cooperated with the government and testified against Bankman-Fried during his criminal trial, saying he directed her actions that led to FTX's downfall. Bankman-Fried received nearly 25 years in prison in March and was also ordered to repay up to $11 billion.

Other former FTX executives have also faced sentencing: Nishad Singh received no prison time but three years of supervised release last month, and Ryan Salame began a seven-and-a-half-year sentence last month. FTX co-founder Gary Wang is set to be sentenced on November 20.