• News
  • Film and TV
  • Music
  • Tech
  • Features
  • Celebrity
  • Politics
  • Weird
  • Community
  • Advertise
  • Terms
  • Privacy & Cookies
  • LADbible Group
  • LADbible
  • SPORTbible
  • GAMINGbible
  • Tyla
  • UNILAD Tech
  • FOODbible
  • License Our Content
  • About Us & Contact
  • Jobs
  • Latest
  • Topics A-Z
  • Authors
Facebook
Instagram
X
Threads
TikTok
YouTube
Submit Your Content
Caroline Ellison is facing 110 years in prison due to collapse of FTX

Home> News

Updated 13:45 22 Dec 2022 GMTPublished 13:19 22 Dec 2022 GMT

Caroline Ellison is facing 110 years in prison due to collapse of FTX

Cryptocurrency company FTX collapsed and it may take several people down with it

Joe Harker

Joe Harker

A woman could spend the next 110 years in prison for her part in the collapse of a cryptocurrency trading empire.

Until recently, FTX had been the second largest crypto exchange in the world - but the company collapsed when it declared bankruptcy on 11 November.

Rumours that FTX and other companies owned by company CEO Sam Bankman-Fried were in financial trouble led to many cryptocurrency investors deciding to withdraw their money, the crypto equivalent of a run on the banks.

However, many customers were unable to access their funds and attempts to organise a bailout failed, leaving FTX and associated companies FTX US and Alameda Research filing for Chapter 11 bankruptcy in the US.

Advert

Filing Chapter 11 means a company can continue operating while going through bankruptcy.

Before the collapse, Bankman-Fried was one of the richest individuals in the world with a net worth of $16 billion, which then plummeted to around $100,000.

FTX founder Sam Bankman-Fried has been arrested and his colleagues have agreed to cooperate with investigations.
South China Morning Post / Alamy Stock Photo

Things went from bad to worse for him when he was arrested in the Bahamas earlier this month and the outlook for his close associates is looking pretty gloomy too.

Advert

Caroline Ellison was the CEO of Alameda Research, another company that was part of Bankman-Fried's collapsing crypto empire which also filed for Chapter 11 bankrupcy.

However, the problems only started there as Reuters later reported that Bankman-Fried transferred around $10 billion in customer funds from FTX to Alameda, with up to $2 billion then going missing.

Caroline Ellison now faces up to 110 years in prison.
@carolinecapital/Twitter

He said he 'disagreed with the characterization' of the money transfer, putting it down to them having 'confusing internal labeling and misread it'.

Advert

Ellison now faces up to 110 years in prison after agreeing a plea deal with prosecutors, having faced seven charges including wire fraud, conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering.

The combined maximum sentences for these charges is 110 years.

The collapse of FTX could land Caroline Ellison in prison for 110 years, even after striking a plea deal.
Dennis Diatel/Alamy Stock Photo

The plea deal document, dated 18 December, says Ellison will plead guilty to the seven charges laid against her and will also have to pay restitution, with the amount she will pay yet to be determined by a court.

Advert

In exchange she will not be prosecuted on any counts of possible criminal tax violation, and she will be expected to fully comply with all investigations both by the prosecution and other law enforcement agencies.

The 28-year-old will also have to provide documents, records, evidence and testimony at other trials if required to do so.

US officials have said that Ellison and FTX co-founder Gary Wang are cooperating with prosecutors.

Featured Image Credit: LinkedIn/Sipa US/Alamy Stock Photo

Topics: Cryptocurrency, Money, News, US News

Joe Harker
Joe Harker

Joe graduated from the University of Salford with a degree in Journalism and worked for Reach before joining the LADbible Group. When not writing he enjoys the nerdier things in life like painting wargaming miniatures and chatting with other nerds on the internet. He's also spent a few years coaching fencing. Contact him via [email protected]

X

@MrJoeHarker

Advert

Advert

Advert

Choose your content:

11 hours ago
12 hours ago
  • 11 hours ago

    TSA issues warning as it bans passengers from taking nine bizarre items on planes

    If you're vacationing soon, you might want to double check that you don't have any of these items in your luggage

    News
  • 11 hours ago

    Apple TV's 'excellent' new film was shot entirely on iPhone and is available to stream for free online

    British musician Stormzy stars in the new Apple TV short film

    Film & TV
  • 12 hours ago

    Pentagon shares details behind 'highly classified' strike on Iran and how stealth bombers traveled ‘without the world knowing’

    Operation Midnight Hammer included more than 125 aircraft, units from the Navy, and so-called 'bunker buster' bombs

    News
  • 12 hours ago

    People are divided after dentist reveals the proper way to brush your teeth

    Dr Victoria Sampson told Steven Bartlett all about oral hygiene on The Diary of a CEO podcast

    News
  • Police claim they've solved 1980 cold case murder after first suspect wrongly spent 20 years in prison
  • Grandmother who served 43 years in prison is finally freed after murder conviction is overturned
  • Wife of man who was deported to 'world's worst prison' due to 'Trump admin error' speaks out in heartbreaking statement
  • El Salvador President shares scathing images of father deported to 'world's worst prison' due to 'Trump admin error'