{"investigation":{"slug":"caroline-ellison","entity_name":"Caroline Ellison","trust_score":12,"severity_base":null,"score_modifier":0,"confidence":0.95,"status":"published","content_type":"investigation","summary":"Caroline Ellison is the former co-CEO and sole CEO of Alameda Research, the cryptocurrency trading firm affiliated with FTX, who pleaded guilty in December 2022 to seven federal counts of fraud and conspiracy related to the misappropriation of billions of dollars in FTX customer funds. She served as the prosecution's star witness in the trial of FTX founder Sam Bankman-Fried, whose conviction in November 2023 and subsequent 25-year sentence were substantially aided by her testimony. Ellison was sentenced to two years in federal prison in September 2024, ordered to forfeit $11 billion, and was released in January 2026 after serving approximately 14 months.","sections":[{"content":"Caroline Ellison was born and raised near Boston, Massachusetts, the eldest daughter of Glenn and Sara Fisher Ellison, both economists at MIT. She graduated from Stanford University in 2016 with a Bachelor of Science in Mathematics, where she was involved in the effective altruism community. After Stanford, she interned twice at Jane Street, a proprietary trading firm in New York, and joined full-time as an equities trader in September 2016 in a cohort mentored by Sam Bankman-Fried. In early 2018, Bankman-Fried recruited Ellison to join Alameda Research, a cryptocurrency hedge fund he had co-founded in November 2017. She joined Alameda in March 2018 and rose through trading roles before being elevated to co-CEO in July 2021, eventually becoming sole CEO.","heading":"Background and Career","sources":[{"url":"https://en.wikipedia.org/wiki/Caroline_Ellison","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://www.theblock.co/post/188535/nerdy-and-highly-intelligent-alamedas-caroline-ellison-casts-complex-shadow","name":"theblock.co","type":"other","credibility":3},{"url":"https://www.entrepreneur.com/business-news/who-is-caroline-ellison-alameda-research-ex-ceo-lawyering/441147","name":"entrepreneur.com","type":"other","credibility":3},{"url":"https://www.boston.com/news/the-boston-globe/2022/12/07/caroline-ellison-ftx-alameda-research/","name":"boston.com","type":"other","credibility":3}],"severity":"medium"},{"content":"As CEO of Alameda Research, Ellison admitted to directing and participating in a scheme that misappropriated billions of dollars in FTX customer funds. Alameda operated with an effectively unlimited line of credit against FTX customer deposits, allowing it to draw on those funds for trading, loans, and investments without disclosure to FTX users or investors. Ellison admitted that FTX had used customer money to help Alameda meet its liabilities, that she and other executives including Bankman-Fried were aware of this arrangement, and that she made deceptive public statements about the separation between Alameda and FTX to perpetuate the scheme. The CFTC found that she directed Alameda to misappropriate 'billions of dollars of FTX funds, including FTX customer funds,' which were then used for trading on other digital exchanges and high-risk cryptocurrency investments. The SEC separately charged her with manipulating the price of FTT, an FTX exchange token, at Bankman-Fried's direction.","heading":"Role in the FTX Fraud","sources":[{"url":"https://www.cftc.gov/PressRoom/PressReleases/8644-22","name":"cftc.gov","type":"other","credibility":3},{"url":"https://www.cnbc.com/2022/12/22/ftxs-gary-wang-alamedas-caroline-ellison-plead-guilty-to-federal-charges-cooperating-with-prosecutors.html","name":"cnbc.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2022/12/22/alameda-chief-caroline-ellison-ftxs-gary-wang-plead-guilty-to-fraud-charges","name":"coindesk.com","type":"other","credibility":3}],"severity":"medium"},{"content":"On December 18, 2022, Ellison pleaded guilty in the Southern District of New York (SDNY) to seven federal counts: conspiracy to commit wire fraud on FTX customers, conspiracy to commit wire fraud on Alameda lenders, wire fraud on Alameda lenders, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering. The charges collectively carried a maximum potential sentence of approximately 110 years. Her plea agreement included $250,000 bail, surrender of travel documents, a prohibition on leaving the continental United States, and a commitment to provide 'substantial' assistance to the DOJ. Simultaneously, the CFTC filed civil charges for fraud and material misrepresentations in connection with digital asset commodity sales, and the SEC filed securities fraud charges. Ellison agreed to bifurcated settlements with both the SEC and CFTC, admitting liability and consenting to remedies including restitution, disgorgement, civil penalties, and permanent trading bans.","heading":"Criminal Charges and Guilty Plea","sources":[{"url":"https://cointelegraph.com/news/caroline-ellison-gary-wang-plead-guilty-to-fraud-charges","name":"cointelegraph.com","type":"other","credibility":3},{"url":"https://www.cftc.gov/PressRoom/PressReleases/8644-22","name":"cftc.gov","type":"other","credibility":3},{"url":"https://www.coindesk.com/business/2022/12/22/caroline-ellison-plea-agreement-250000-bail-surrender-of-travel-documents-forfeiture-of-assets","name":"coindesk.com","type":"other","credibility":3},{"url":"https://finance.yahoo.com/news/alamedas-caroline-ellison-ftxs-gary-021723555.html","name":"finance.yahoo.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Ellison served as the prosecution's star and most consequential witness in the fraud trial of Sam Bankman-Fried, held in October and November 2023 in the SDNY. In testimony described by prosecutors as the 'cornerstone' of the government's case, Ellison testified that Bankman-Fried was the principal decision-maker who directed her to transfer FTX customer funds to Alameda Research and to take customer deposits to repay Alameda's loans. She described living in 'a constant state of dread' during her tenure as CEO and characterized Bankman-Fried as 'the one who set up the systems that allowed Alameda to take the money.' Federal prosecutors assessed her cooperation as 'extraordinary' and 'crucial to the Government's successful prosecution,' stating she provided 'credible and compelling testimony' and was 'forthcoming about her own grave misconduct.' Bankman-Fried was convicted on all seven counts in November 2023 and subsequently sentenced to 25 years in prison.","heading":"Government Cooperation and SBF Trial Testimony","sources":[{"url":"https://www.washingtonpost.com/business/2023/10/10/caroline-ellison-sam-bankman-fried-trial/","name":"washingtonpost.com","type":"other","credibility":3},{"url":"https://www.npr.org/2023/10/11/1205045583/sam-bankman-fried-trial-caroline-ellison-ftx-alameda-research","name":"npr.org","type":"other","credibility":3},{"url":"https://www.nbcnews.com/business/business-news/caroline-ellison-testimony-highlights-sam-bankman-fried-trial-rcna119935","name":"nbcnews.com","type":"other","credibility":3},{"url":"https://cointelegraph.com/news/alameda-research-ftx-caroline-ellison-cooperation-sentencing","name":"cointelegraph.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Ellison was sentenced on September 24, 2024, by U.S. District Judge Lewis A. Kaplan in the Southern District of New York to 24 months in federal prison and ordered to forfeit $11 billion. The forfeiture amount reflects the scale of the broader FTX fraud rather than personal enrichment. Judge Kaplan praised her cooperation as 'very, very substantial' but declined to follow the federal Probation Department's recommendation of three years of supervised release with no incarceration, holding that even extraordinary cooperation could not serve as a 'get out of jail free card' and that a custodial sentence was necessary to deter potential future bad actors. Ellison addressed the court tearfully, stating 'I'm sorry I wasn't brave.' Her sentence stood in stark contrast to Bankman-Fried's 25-year term. As part of her SEC settlement, Ellison also received a 10-year ban from serving as an officer or director of any public company or cryptocurrency exchange.","heading":"Sentencing","sources":[{"url":"https://www.cnbc.com/2024/09/24/sam-bankman-fried-caroline-ellison-sentenced-ftx-.html","name":"cnbc.com","type":"other","credibility":3},{"url":"https://www.bloomberg.com/news/articles/2024-09-24/caroline-ellison-sentenced-to-two-years-in-jail-in-ftx-case","name":"bloomberg.com","type":"other","credibility":3},{"url":"https://fortune.com/crypto/2024/09/24/caroline-ellison-ftx-sam-bankman-fried-prison-sentencing/","name":"fortune.com","type":"other","credibility":3},{"url":"https://courthousenews.com/caroline-ellison-star-witness-of-ftx-trial-gets-2-years-in-prison-for-role-in-cryptocurrency-fraud/","name":"courthousenews.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Ellison reported to a low-security federal prison in Danbury, Connecticut in early November 2024 to begin serving her sentence. She was transferred to community confinement in October 2025, and was released from federal custody on approximately January 22, 2026, after serving roughly 14 months — approximately 60 percent of her two-year sentence. Early release was attributed to sentence reductions tied to her cooperation with prosecutors and compliance with prison regulations. Upon release, the SEC's 10-year prohibition on serving in executive roles at public companies or cryptocurrency exchanges remained in effect.","heading":"Incarceration and Release","sources":[{"url":"https://www.cnbc.com/2024/11/07/ftxs-caroline-ellison-reports-to-prison-to-begin-2-year-sentence.html","name":"cnbc.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2026/01/22/caroline-ellison-former-alameda-and-ftx-executive-released-after-14-months","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.theblock.co/post/383754/caroline-ellison-prison-release-ftx","name":"theblock.co","type":"other","credibility":3},{"url":"https://www.cryptopolitan.com/caroline-ellison-released-from-prison/","name":"cryptopolitan.com","type":"other","credibility":3}],"severity":"medium"},{"content":"In addition to the DOJ criminal proceedings, Ellison faced simultaneous civil enforcement actions from two federal regulators. The CFTC filed charges on December 19, 2022, for fraud and material misrepresentations in connection with the sale of digital asset commodities in interstate commerce, citing her role in directing Alameda to misappropriate FTX customer funds and making deceptive public statements about the operational separation between Alameda and FTX. She admitted liability for violating Section 6(c)(1) of the Commodity Exchange Act. The SEC filed securities fraud charges on December 20, 2022, alleging she manipulated the price of the FTT exchange token at Bankman-Fried's direction. Both agencies issued consent orders with remedies including restitution, disgorgement of profits, civil monetary penalties, permanent trading bans, and injunctive relief against future violations.","heading":"Regulatory and Civil Actions","sources":[{"url":"https://www.cftc.gov/PressRoom/PressReleases/8644-22","name":"cftc.gov","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2022/12/22/alameda-chief-caroline-ellison-ftxs-gary-wang-plead-guilty-to-fraud-charges","name":"coindesk.com","type":"other","credibility":3},{"url":"https://finance.yahoo.com/news/alamedas-caroline-ellison-ftxs-gary-021723555.html","name":"finance.yahoo.com","type":"other","credibility":3}],"severity":"medium"}],"timeline":[{"date":"2016-09","event":"Ellison joins Jane Street Capital full-time as an equities trader after graduating Stanford; is mentored by Sam Bankman-Fried.","source":"","date_original":"2016-09-01"},{"date":"2018-03","event":"Ellison joins Alameda Research as a trader after Bankman-Fried recruits her.","source":"","date_original":"2018-03-01"},{"date":"2021-07","event":"Bankman-Fried elevates Ellison to co-CEO of Alameda Research; she later becomes sole CEO.","source":"","date_original":"2021-07-01"},{"date":"2022-11-02","event":"FTX collapse begins following CoinDesk report on Alameda's balance sheet; Ellison's role as CEO of the interlinked trading firm comes under scrutiny.","source":""},{"date":"2022-11-11","event":"FTX files for Chapter 11 bankruptcy; Sam Bankman-Fried resigns as CEO.","source":""},{"date":"2022-12-18","event":"Ellison pleads guilty in the Southern District of New York to seven counts of fraud and conspiracy; simultaneously enters settlements with the SEC and CFTC.","source":""},{"date":"2023-10-10","event":"Ellison testifies as the prosecution's star witness in the fraud trial of Sam Bankman-Fried, testifying that he directed the misappropriation of FTX customer funds.","source":""},{"date":"2023-11-02","event":"Sam Bankman-Fried is convicted on all seven counts by a jury; later sentenced to 25 years in prison.","source":""},{"date":"2024-09-24","event":"Ellison is sentenced to 24 months in federal prison and ordered to forfeit $11 billion by Judge Lewis A. Kaplan in the SDNY.","source":""},{"date":"2024-11-07","event":"Ellison reports to federal prison in Danbury, Connecticut to begin serving her sentence.","source":""},{"date":"2025-10","event":"Ellison is transferred from Danbury prison to community confinement.","source":"","date_original":"2025-10-01"},{"date":"2026-01-22","event":"Ellison is released from federal custody after serving approximately 14 months; a 10-year SEC executive ban remains in effect.","source":""}],"sources_used":[{"url":"https://www.cftc.gov/PressRoom/PressReleases/8644-22","name":"CFTC Press Release 8644-22 — Charges Against Alameda CEO Caroline Ellison","type":"regulatory","archive_url":"http://web.archive.org/web/20260611184812/https://www.cftc.gov/PressRoom/PressReleases/8644-22","credibility":1,"archive_timestamp":"2026-06-11T18:48:12+00:00"},{"url":"https://www.cnbc.com/2022/12/22/ftxs-gary-wang-alamedas-caroline-ellison-plead-guilty-to-federal-charges-cooperating-with-prosecutors.html","name":"FTX's Gary Wang, Alameda's Caroline Ellison plead guilty - 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