Former FTX executive Caroline Ellison has been released from federal custody after serving part of her sentence tied to the implosion of FTX.
Ellison was not a sideshow. She ran Alameda Research, the proprietary trading arm that treated customer deposits like a free liquidity buffet. She pled guilty in 2024 to fraud and money laundering and cooperated extensively. Translation: she snitched and traded testimony for time.
That cooperation was decisive in the conviction of Sam Bankman-Fried, who is now serving a 25 year sentence, one of the longest handed out for a modern financial crime in the US.
14 months served out of 24.
Snitching matters more than damage caused.
Prosecutors needed a map through opaque balance sheets, intercompany loans, and nonsense accounting. She gave it to them. The first executive to fold writes history.
Ellison’s release is a reminder of the power of snitching.
And I'm pretty sure she still holds some xmr somewhere...
Ellison was not a sideshow. She ran Alameda Research, the proprietary trading arm that treated customer deposits like a free liquidity buffet. She pled guilty in 2024 to fraud and money laundering and cooperated extensively. Translation: she snitched and traded testimony for time.
That cooperation was decisive in the conviction of Sam Bankman-Fried, who is now serving a 25 year sentence, one of the longest handed out for a modern financial crime in the US.
14 months served out of 24.
Snitching matters more than damage caused.
Prosecutors needed a map through opaque balance sheets, intercompany loans, and nonsense accounting. She gave it to them. The first executive to fold writes history.
Ellison’s release is a reminder of the power of snitching.
And I'm pretty sure she still holds some xmr somewhere...
