Caroline Ellison (born November 1994) is an American business executive convicted of fraud in 2023 related to the bankruptcy of FTX. She was CEO of Alameda Research, a trading firm affiliated with FTX and founded by Sam Bankman-Fried. After FTX and Alameda filed for bankruptcy, Ellison was terminated.
In 2022, she pleaded guilty to several charges, including wire fraud and conspiracy. On September 24, 2024, she was sentenced to two years in prison for her role in the FTX scandal.
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Caroline Ellison Net Worth
Caroline Ellison has a net worth of $5 million. She testified that while at Alameda, she earned a base salary of $200,000 annually and received a $20 million bonus in 2021.
She invested $10 million in a startup, gave $100,000 to her parents, and transferred $2 million to a donor-advised fund. Along with Sam Trabucco, Ellison was named to Forbes’s “30 under 30” list. At the time, she was 27, and the firm was reportedly making $3-4 million per day.
Early life
Caroline Ellison was born in Boston and raised in Cambridge and Newton. The eldest of three daughters of Glenn and Sara Fisher Ellison, both economists at MIT, she was exposed to economics early. At age 8, she gave her father an economic study of stuffed animal prices.
In school, she excelled in math, competing in the American Mathematics Competitions and representing the US in the International Linguistics Olympiad. Ellison graduated from Stanford University in 2016 with a degree in mathematics and was involved in effective altruism.
Career
In March 2018, Caroline Ellison joined Alameda Research, a cryptocurrency trading firm co-founded by Sam Bankman-Fried and Tara Mac Aulay. She became co-CEO in October 2021 alongside Sam Trabucco, later taking over as sole CEO in 2022.
Ellison played a key role in the creation of FTX. In late 2022, an anonymous source revealed that Alameda owed $10 billion to FTX, which allegedly lent customer funds. Ellison admitted to knowing about the misuse and concealment of customer assets.
Personal life
Reports from former employees suggested a romantic relationship between Caroline Ellison and Sam Bankman-Fried, which was highlighted by CoinDesk. Bankman-Fried later described their relationship as brief in an interview with Good Morning America.
Ellison, alongside other FTX executives, contributed to the FTX Foundation’s Future Fund, aimed at supporting philanthropic efforts. However, the fund ceased operations after senior staff resigned, citing concerns about its ability to honor grants and the legitimacy of its funding, leaving beneficiaries unsure about returning grant money.
What happened to Caroline Ellison?
Caroline Ellison, a former top adviser to cryptocurrency mogul Sam Bankman-Fried, was sentenced to two years in prison for her involvement in the $8 billion fraud that contributed to the collapse of the once-prominent FTX crypto exchange. Judge Lewis A. Kaplan presided over the case.
Conclusion
Caroline Ellison’s journey in the crypto world is a tale of rapid ascent, immense wealth, and a dramatic fall. Her story reflects the volatile and often murky waters of cryptocurrency trading and the high stakes involved in this burgeoning industry.
FAQs about Caroline Ellison
- What led to Caroline Ellison’s rise in the crypto world? Caroline Ellison’s ascent in the crypto world was propelled by her role as CEO of Alameda Research, where she leveraged her expertise in quantitative trading and her connections in the industry, particularly with Sam Bankman-Fried.
- How was Ellison involved in the FTX scandal? Ellison was deeply involved in the FTX scandal as the CEO of Alameda Research. She played a key role in the misuse of customer funds and the financial mismanagement that led to the collapse of both Alameda and FTX.
- What is Caroline Ellison’s stance on philanthropy? Ellison, along with Sam Bankman-Fried, was a proponent of “effective altruism,” a philosophy advocating for making substantial wealth to donate significantly to charitable causes.
- What legal consequences has Ellison faced? Following the FTX scandal, Ellison pleaded guilty to multiple charges, including wire fraud and money laundering, as part of her involvement in the financial mismanagement and fraud at Alameda Research and FTX.
- How has Ellison’s personal life influenced her career? Ellison’s personal life, particularly her relationship with Sam Bankman-Fried and her identification as a polyamorist, garnered public attention and intersected with her professional role in the crypto industry.
