Executives Caroline Ellison and Ryan Salame of the now bankrupt cryptocurrency trading platform, FTX, have reportedly had their sentences reduced due to their cooperation with prosecution and good behavior as inmates.
Salame and Ellison pleaded guilty to the charges against them, which were criminal fraud charges and seven federal counts of fraud and conspiracy, respectively. With their guilty plea, they saved themselves and the prosecution from a lengthy trial process. Both of them pleaded guilty in 2023 and were sentenced this year in May.
Rewarding the cooperation of the fraudulent FTX execs
In the federal prison system, inmates can earn sentence reductions through good behavior and participation in rehabilitation programs.
Ellison was sentenced to two years in prison. She began her sentence at the Danbury Federal Correctional Institution on November 7. She was scheduled to be released in October of 2026, but prison records state that her release date is now July 20, 2026. The new release date is more than three months shy of two years.
Ellison’s attorneys declined to comment, but the early release can be attributed to the fact that Ellison was a star witness in the criminal trial against her ex-boyfriend, Sam Bankman-Fried.
Salame was sentenced to 7.5 years in federal prison and began his sentence in October. He was due for release in April of 2032, but now his release date, as listed on the Federal Bureau of Prisons website, is March 1, 2031. This new date is over a year earlier than his initial release schedule.
Salame’s attorneys have also not commented on the matter. However, a spokesperson of the Bureau of Prisons stated that incarcerated individuals could earn time off their sentences for good behavior under the 2018 First Step Act, according to a Business Insider report.
Singh, who was arrested alongside the other executives, assisted the prosecution and testified against Bankman-Fried. He got no prison time.
The infamous FTX implosion 2022
Before it went bankrupt, FTX was a leading crypto exchange globally, while its founder, Sam Bankman-Fried (SBF), had achieved near superstar status, making waves even in political circles. The exchange platform was associated and endorsed by public figures and it was believed to be the gold standard for safe and secure cryptocurrency trading.
The platform quickly collapsed in 2022 when users pulled their funds following rumors about FTX’s improper ties to Alameda Research. SBF was the CEO of FTX, and his girlfriend at the time, Caroline Ellison, led Alameda Research, a crypto hedge fund founded by Bankman-Fried before the creation of FTX.
After the collapse of FTX, Bankman-Fried, his girlfriend Caroline Ellison, Ryan Salame and Nishad Singh were all promptly arrested on criminal fraud charges.
The mastermind behind the operation, Sam Bankman-Fried, was sentenced to 25 years in prison. The prison records currently have no date listed for his release.
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