The former business partner and girlfriend of cryptocurrency scammer Sam Bankman-Fried, Caroline Ellison, was sentenced to two years in jail for her participation in one of the largest financial scams.

FTX founder Bankman-Fried was sentenced to 25 years in jail last year after Ellison, the CEO of Alameda Research and his on-and-off girlfriend, testified for the prosecution.

After FTX collapsed in 2022, Ellison pled guilty to seven offenses, including fraud, carrying a possible 110-year jail term.

However, the court and prosecutors agreed that Ellison deserved mercy for collaborating with detectives and testifying against Bankman-Fried for three days during his trial.

On Tuesday, United States District Judge Lewis A. Kaplan said Ellison's assistance was “very substantial” but a jail term was appropriate despite her attorneys' plea for a non-custodial sentence considering the deception.

But here's the thing: this was close to the worst financial scam ever committed in this nation or anyplace else.”

Kaplan advised Ellison should be detained in minimum-security.

Ellison testified at Bankman-Fried's trial that he ordered her and others to use FTX clients' monies for riskier activities via sister business Alameda Research, real estate purchases, and political contributions.

At his trial, Bankman-Fried accused Ellison of being a lousy boss and portrayed himself as a well-meaning entrepreneur and altruist out of his depth.

This month, Bankman-Fried appealed his conviction on seven fraud and conspiracy counts, alleging that the court prevented his legal team from bringing information that might have assisted him.

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