Ellison testified that she knew the lies would eventually catch up with her and expressed deep regret during her trial. “To all the victims and everyone I harmed directly and indirectly, I am so, so sorry,” she said while holding back tears during her sentencing in New York. She also admitted that her moral compass shifted during her time at Alameda, especially due to her emotional entanglement with Bankman-Fried.
Sentencing and Consequences
Judge Kaplan, who presided over the case, rejected the request from Ellison’s lawyers for leniency, arguing that the $11 billion fraud was too significant for her to avoid prison time.
He sentenced her to two years in a low-security prison near Boston where her family lives. He also ordered her to forfeit $11 billion, a sum she is unlikely to pay given her financial situation.
Her surrender date is set for after November 7.
Ellison’s cooperation with federal authorities was extensive. She met with government officials around 20 times to help prepare for Bankman-Fried’s trial. According to prosecutors, her testimony was critical in explaining the “what,” “how,” and “why” of the FTX fraud scheme. “The ‘what’ and ‘how’ of the crimes, as well as the ‘why,’ would have been difficult to prove without Ellison’s testimony,” they said.
Ongoing Cooperation with Authorities
Even after her guilty plea, Ellison has continued to cooperate with authorities. She assisted in a cryptocurrency-related investigation by the New York attorney general’s office and provided information to Justice Department prosecutors about others who may have been involved in the FTX fraud scheme.
