Sentencing Caroline Ellison Conveys Remorse over Involvement in FTX Fraud Expressing Guilt

Caroline Ellison, a former executive at FTX, expressed profound regret during her sentencing hearing for her involvement in the fraud. She acknowledged her significant role in the scheme and cooperated with prosecutors in the case against her ex-boyfriend, Sam Bankman-Fried. Ellison claimed that Bankman-Fried’s influence prevented her from acting ethically and took full responsibility for the devastation caused by the collapse of FTX.

Caroline Ellison, a central figure in the FTX collapse, expressed deep remorse during her sentencing hearing regarding her role in the FTX fraud. She acknowledged the extensive damage caused by her actions and her failure to fully comprehend the magnitude of the harm. Ellison stated that it was Bankman-Fried’s persuasive voice that prevented her from speaking out sooner.

As the former CEO of Alameda Research, which played a significant role in the FTX scandal, Ellison shared the guilt she felt and her desire to finally tell the truth.

During her court appearance, Ellison read a prepared statement to Judge Lewis Kaplan, speaking rapidly and with tears in her eyes. She addressed the judge with a trembling voice.

“That doesn’t mean I didn’t try. I am deeply sorry. I am filled with shame for what we have done,” Ellison confessed. She admitted that, at times, she couldn’t fully comprehend the extent of the damage, but it didn’t deter her from making an effort. She revealed that the fear of the consequences when the truth eventually emerged haunted her every day, but she now felt a sense of relief that she no longer had to lie.

Ellison explained that every time she thought about the harm caused, she heard Bankman-Fried’s voice in her mind, which held her back from speaking out earlier. For the first time during the hearing, she mentioned her ex-boyfriend, Bankman-Fried, who was sentenced to 25 years in prison in March of last year for his involvement in the FTX collapse. She acknowledged that standing up against Bankman-Fried’s influence and speaking out earlier would have been courageous, but apologized for her inability to do so.

“Not a day goes by when I don’t think about all the people I hurt,” Ellison stated.

In December 2022, Ellison testified against Bankman-Fried, admitting that Alameda Research had special access to a borrowing facility on FTX.com from 2019 to 2022. She pleaded guilty to seven charges of fraud and conspiracy related to the collapse of FTX. In her testimony, she revealed that she assisted in creating balance sheets that concealed the full extent of Alameda’s borrowing and the billion-dollar loans provided to FTX executives and affiliated parties.

Ellison’s confession sheds light on the immense pressure and manipulation within FTX, which resulted in widespread financial losses and severe legal consequences.