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A new development has occurred in the FTX scandal that has deeply shaken the cryptocurrency world. Caroline Ellison, the former CEO of Alameda Research, was sentenced to 2 years in prison in a trial held in New York. Judge Lewis Kaplan emphasized that Ellison was exploited by Sam Bankman-Fried, thereby reducing the sentence. This decision brings significant discussions regarding legal regulations and executive accountability in the cryptocurrency sector.
The Crypto World is Not Satisfied with the Sentence
During the hearing, Judge Kaplan showed sympathy towards Ellison, significantly reducing the potential sentence that could have reached up to 110 years. Kaplan pointed out the sensitivity of the situation by stating to Ellison, "Mr. Bankman-Fried knew your weak point. You were vulnerable and were exploited."
Ellison's lawyers had requested that their client be satisfied with the time spent in custody. However, the Judge emphasized that there would be "no free pass out of prison," sentencing her to two years in a minimum-security prison. Ellison's surrender date was set for November 7 or later.
The former CEO of Alameda Research had cooperated extensively with the prosecution in the case against Sam Bankman-Fried. This cooperation led the prosecution to recommend a lighter sentence for Ellison. During the hearing, Ellison expressed that she was afraid to go out in public due to the harassment she faced from the crypto community.
In the cases related to the collapse of FTX, other former executives Gary Wang and Nishad Singh are also expected to receive prison sentences. Singh will appear before the judge on October 30, while Wang will do so on November 20. Both individuals have accepted the charges, similar to Ellison.
Meanwhile, Sam Bankman-Fried, the founder of FTX, was sentenced to 25 years in prison in March. Former FTX executive Ryan Salame received a 7.5-year prison sentence in May.
The conclusion of the Ellison case sets an important precedent regarding legal responsibility and accountability in the cryptocurrency sector. This decision may also serve as a guide for future regulations and investor protection measures.
While blockchain technology and cryptocurrencies have the potential to revolutionize the financial system, events like the FTX scandal show that this sector is still in the process of maturation. The Ellison case has once again highlighted the importance of transparency, oversight, and legal compliance.
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