- Caroline Ellison, former CEO of Alameda Research, faces a possible 110-year prison sentence for her role in the FTX collapse.
- Ellison admitted to misusing FTX user funds at the direction of Sam Bankman-Fried during a company meeting in November 2022.
Caroline Ellison, the former CEO of Alameda Research and ex-girlfriend of Sam Bankman-Fried, now faces a potential 110-year prison sentence for her involvement in the collapse of FTX, one of the largest crypto exchanges. Once considered a rising star in the cryptocurrency world, Ellison’s role in the misuse of billions of dollars in user funds has placed her at the center of one of the most significant financial scandals in the industry’s history.
Born in 1994 to MIT economists, Ellison’s mathematical talents were evident from a young age. Her academic success led her to Stanford University, where her interest in effective altruism—using data to maximize positive social impact—ultimately introduced her to Bankman-Fried and the world of crypto.
Ellison joined Alameda Research, eventually becoming its CEO, though it was widely known that Bankman-Fried held most of the power. Their relationship, both personal and professional, was turbulent, as revealed in Michael Lewis’s book about Bankman-Fried. In her personal diary, Ellison reflected on her difficulties, writing she was “too associated with him in a way that was painful.”
The FTX collapse unfolded in November 2022, when Ellison admitted at a company meeting to the misuse of FTX user funds at Bankman-Fried's direction. This led to widespread investigations and the downfall of FTX and Alameda.
Ellison’s sentencing is set for September 24. Although she faces up to 110 years in prison, her cooperation with authorities, including providing key testimony against Bankman-Fried—who was sentenced to 25 years—may result in a reduced sentence.
Edited by Harshajit Sarmah
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Harshajit Sarmah
