Guilt and Regret Over FTX Fraud

Caroline Ellison, a central figure in the collapse of FTX, expressed profound regret during her sentencing hearing for her involvement in the FTX fraud. With a voice filled with emotion, she acknowledged the extensive harm caused by her actions and confessed her struggle to fully grasp the magnitude of the damage. Ellison revealed that it was the influence of Sam Bankman-Fried, which prevented her from coming forward earlier.

Ellison’s Remorseful Admission

As the former CEO of Alameda Research, which played a significant role in the FTX fraud, Ellison conveyed her constant burden of guilt and her earnest desire to disclose the truth. During her hearing, she had the opportunity to address Judge Lewis Kaplan with a prepared statement. Witnesses in the courtroom noted that Ellison read her statement quickly and tearfully. She admitted that, on some level, her mind couldn’t comprehend the full extent of the harm caused. Despite this, she emphasized her efforts to understand, saying, “That doesn’t mean I don’t try. I am so sorry. I am deeply ashamed of what we had done,” she added, her voice breaking with emotion.

Ellison shared that the weight of her actions had been on her mind every day, causing her constant worry about the potential consequences when the truth was finally revealed. She expressed relief at no longer having to lie, stating, “Not a day goes by when I don’t think about all the people I hurt.” Ellison also mentioned her ex-boyfriend, Sam Bankman-Fried, for the first time during the hearing, stating, “Every time I thought about it, I heard Sam’s voice in my head.” Bankman-Fried was sentenced to 25 years in prison last March after being convicted on multiple charges.

Consumed by guilt, Ellison confessed that ignoring the voice in her head and speaking out would have been the brave thing to do, but she apologized for not having the courage to do so earlier.

Previous Hearings

In December 2022, Ellison had testified against Bankman-Fried, revealing that she was aware of Alameda’s access to a borrowing facility on FTX.com from 2019 through 2022. She also pleaded guilty to seven counts of fraud and conspiracy related to the collapse of FTX. Ellison disclosed to the US District Judge in Manhattan federal court that certain quarterly balance sheets were created to conceal the extent of Alameda’s borrowing and the billion-dollar loans made to FTX executives and related parties.