Caroline Ellison Expresses Guilt for Role in FTX Fraud at Sentencing

Caroline Ellison, who is a key figure in the FTX collapse, voiced her deep remorse in her sentencing hearing over her role in the FTX fraud. She admitted the massive damage caused by her actions and her inability to grasp the scale of damage fully. She claimed that it was Sam Bankman-Fried’s voice in her head, that prevented her from speaking out sooner. 

As the former CEO of Alameda Research, which was heavily involved in the FTX scandal, Ellison shared the guilt she felt and her desire to finally tell the truth.

Ellison Guilty Over Actions

During her court appearance, she read a prepared statement to Judge Lewis Kaplan, speaking quickly and with tears in her eyes. She addressed them with a breaking voice.

“That doesn’t mean I don’t try. I am so sorry. I am deeply ashamed of what we had done,”

Ellison admitted that, at times, she couldn’t fully understand the extent of the damage, though it didn’t stop her from trying. She shared that the fear of what would happen when the truth came out haunted her every day, but she felt relief now that she no longer had to lie.

Haunted by Bankman-Fried’s Influence

Ellison explained that every time she thought about the harm caused, she heard Sam 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 last March for his role in the FTX collapse.

She admitted that standing up against Bankman-Fried’s influence and speaking out earlier would have been brave, but apologized for not being able to do so.

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

Ellison’s Testimony and Guilty Plea

Back 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 tied to the collapse of FTX. In her testimony, she revealed that she helped create balance sheets that hid the full extent of Alameda’s borrowing and the billion-dollar loans made to FTX executives and related parties.

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