Caroline Ellison: How She’s Connected to Sam Bankman-Fried
Ellison is being sentenced for her role in the downfall of Sam Bankman-Fried’s FTX cryptocurrency exchange. Learn more about her involvement, here.
Caroline Ellison will be sentenced for her role in the downfall of Sam Bankman-Fried’s FTX cryptocurrency empire. The 29-year-old worked as the CEO of Alameda Research, which was the trading firm that was associated with FTX. Upon the business’ 2022 bankruptcy, Ellison took responsibility for her involvement in the business’ billion-dollar debt. But what exactly did she do?
Learn all about Ellison and her association with Bankman-Fried, below.
Who Is Caroline Ellison?
Ellison is a Boston native who graduated from Stanford University with a degree in math in 2016. After landing two internships at a trading firm in New York City, she worked her way up to a full-time job. Ellison then became an equities trader at the cohort that was led by Bankman-Fried at the time. The two shared similar interests, and Bankman-Fried asked Ellison in 2018 if she’d join him at Alameda Research. By 2021, Ellison became the co-CEO of Alameda Research, then the sole CEO in mid-2022.
During her time working for Alameda Research, Ellison and Bankman-Fried became romantically involved.
Meet Caroline Ellison, CEO of Sam Bankman Fried's Alameda Research and self-described Harry Potter fan. And now you know what happened to FTX. pic.twitter.com/DXiG4nkaHH
— Catch Up (@CatchUpFeed) November 11, 2022
What Was Caroline Ellison Charged With?
After Alameda filed for Chapter 11 bankruptcy in late 2022, Ellison was dismissed from her role as its CEO. That year, she pleaded guilty to two counts of wire fraud, two counts of conspiracy to commit wire fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering.
Since Ellison cooperated with government officials in their case against Bankman-Fried, Ellison’s defense attorneys argued for leniency.
“From the start, Mr. Bankman-Fried’s behavior was erratic and manipulative,” Ellison’s lawyers wrote in a court filing, according to the Associated Press. “He initially professed strong feelings for Caroline and suggested their liaison would develop into a full relationship. But after a few weeks, he would ‘ghost’ Caroline without explanation, avoiding her outside of work and refusing to respond to messages that were not work-related.”
Ellison’s legal team further argued that she “approached her cooperation with remarkable candor, remorse and seriousness” during her “many meetings with the government.”
“She dedicated herself to extensive document review that helped identify key corroborating documents in an investigation hamstrung by Bankman-Fried’s systematic destruction of evidence,” the court filing read, per the AP. “Caroline blames no one but herself for what she did. She regrets her role deeply and will carry shame and remorse to her grave.”
Caroline Ellison’s Prison Sentence
Ellison’s lawyers have argued for her to receive minimal to no prison time. However, if she is found guilty on all counts that she pleaded guilty to, the former Alameda Research CEO could face up to 110 years behind bars, per ABC News.
She will receive her prison sentence on Tuesday, September 24.
Sam Bankman-Fried’s Jail Sentence
Earlier this year, Bankman-Fried was sentenced to 25 years in prison. In March, he was ordered to pay more than $11 billion for defrauding customers and investors. Bankman-Fried filed an appeal after the sentencing.