FTX liquidation continues: Former Alameda CEO Caroline Ellison officially sentenced to prison.

The once $3.2 billion valued encryption empire has collapsed, and now there is another story behind bars. Caroline Ellison – the helmsman of Alameda Research and the business and romantic partner of FTX founder Sam Bankman-Fried – has been sent to a federal prison in Connecticut to begin her sentence this week.

Sentencing Details Breakdown

Alison's Penalty List:

• 2 years imprisonment
• $11 billion refund order (illegal profits)
• September ruling, effective November

Interestingly, the federal probation office originally recommended 3 years of probation without imprisonment, but Judge Lewis Kaplan still chose a prison sentence. His reasoning was straightforward: there is a need to deter future fraudsters.

However, Kaplan did not treat Allison harshly—he highly praised her full cooperation with the prosecution, calling it “the rarest positive cooperation” in his career.

A Key Link in the FTX Embezzlement Chain

Alameda Research, managed by Allison, absorbed most of the $8 billion that SBF siphoned from FTX. This money originally belonged to platform customers' deposits. Where did it ultimately go? High-risk venture projects + other gray operations.

A month after the FTX collapse in December 2022, Allison pleaded guilty. This was her bargaining chip to secure a lighter sentence and became a key witness against Bankman-Fried, who has already received a 25-year prison term.

Who else is in line?

• Nishad Singh (former FTX executive): sentenced + 3 years probation
• Gaili Wang (Co-founder): is seeking probation and has testimony records.
• Sam Bankman-Fried himself: 7 counts of fraud found guilty, starting from 25 years.

A Terrifying Thought

Judge Kaplan recently set a deadline for the U.S. government: a compromise must be reached by January 15 regarding the return of the $13.25 million Democratic political donation. This money is part of the funds used by SBF for laundering. The mess of FTX's accounts is still being uncovered little by little.