Caroline Ellison, the former CEO of Alameda Research, was sentenced to 24 months in prison for her role in the FTX collapse. She must also forfeit $11 billion.

Ellison pleaded guilty to two counts of wire fraud and five conspiracy counts in December 2022 as part of a cooperation agreement with the government. Prosecutors had recommended a lenient sentence because of Ellison’s “extraordinary” and “very timely” cooperation. Her own lawyers asked for no jail time, as did the federal Probation Department.

“I’ve seen a lot of cooperators in 30 years. I’ve never seen one quite like Ms. Ellison,” said Judge Lewis Kaplan during the sentencing hearing, according to Bloomberg. In sharp contrast to Sam Bankman-Fried, there were no obvious inconsistencies in her testimony, which was “very incriminating of herself.”

Still, she was culpable for her role in the fraud, Kaplan said.

Ellison was the key witness at the trial of FTX cofounder Sam Bankman-Fried, where she testified for three days. A statement submitted by the prosecution before Ellison’s sentencing said the speed at which she came clean made it possible to indict her ex-boyfriend Bankman-Fried quickly, “ensuring that he did not flee the Bahamas or further obstruct the government’s investigation.” The document also noted that Ellison was completely and immediately forthcoming in her meetings with the government. 

Ellison was also prompt in assisting John J. Ray, the new CEO charged with cleaning up the FTX mess, in locating and recovering customer assets, according to a statement written by Ray submitted by the defense. Her “early cooperation” was “valuable” in recovering debtors’ assets, he wrote. Ellison is working on a deal where she will turn over “substantially all of her remaining assets after satisfying her forfeiture obligations” to the FTX debtors.

In sharp contrast to Bankman-Fried, Ellison appears to truly regret her role in the fraud. We know this not just because of her cooperation agreement — but because she confessed and apologized to her staff in a meeting she didn’t know was taped. That taped confession, in addition to sealing Bankman-Fried’s fate, also demonstrated her contrition.

There were some other mitigating factors, besides Ellison’s honesty. She was the only coconspirator who did not have equity in Alameda or FTX, and “the government found no evidence that Ellison enjoyed the wealth generated by the fraud,” prosecutors wrote. 

Ellison has already experienced significant fallout. Her diaries have been splashed across the pages of The New York Times, her psychiatrist gave an interview about her to Michael Lewis for his book Going Infinite, and she was derided in shockingly misogynistic language by large chunks of the crypto community she’d once been a part of. She’s been unable to find paying work and is afraid to go out in public, according to documents filed by her lawyers. This account was corroborated by the prosecution, who wrote, “The government cannot think of another cooperating witness in recent history who has received a greater level of attention and harassment.”