Caroline Ellison was sentenced to two years in prison for her involvement in the fraud.

Ellison’s testimony was crucial in the conviction of Sam Bankman-Fried, as she provided detailed accounts of how he directed her and others to misappropriate FTX customer funds.

U.S. District Judge Lewis Kaplan acknowledged that Ellison was “gravely culpable” in the fraud but also recognized her “remarkable cooperation,” which distinguished her from Bankman-Fried.

Ellison pleaded guilty to seven felony counts, including fraud and conspiracy.

Besides Ellison, Nishad Singh and Gary Wang, two other former FTX executives who cooperated with prosecutors, are awaiting sentencing in October and November, respectively.

Ellison’s sentence was reduced due to her significant cooperation with the authorities, which was instrumental in securing Bankman-Fried’s conviction. Prosecutors recommended leniency because of her honest and full cooperation.

Sam Bankman-Fried was convicted of multiple fraud charges related to the collapse of FTX and is serving a 25-year prison sentence. He is currently appealing the conviction and sentence.

Ellison faced a potential maximum sentence of 110 years in prison for her crimes.

Yes, during her sentencing hearing, Ellison expressed deep regret, saying that she thinks about the harm she caused every day and wished she had been brave enough to speak out sooner.

Ellison was sentenced for her role in a massive financial fraud, which involved the misappropriation of $8 billion in customer funds from FTX, the cryptocurrency exchange founded by Sam Bankman-Fried.