In a surprising turn of events, Caroline Ellison, the former CEO of Alameda Research, has been sentenced to two years in a minimum-security prison for her role in the collapse of FTX. The decision was handed down on September 24 by Judge Lewis Kaplan in the District Court of Southern New York. Ellison was also ordered to forfeit approximately $11 billion in earnings tied to FTX's collapse.

Despite facing a potential 110-year sentence, Ellison received a lighter punishment due to her cooperation with prosecutors in their case against former FTX CEO Sam Bankman-Fried, her ex-colleague and alleged boyfriend. During sentencing, Judge Kaplan acknowledged her vulnerabilities, stating that Bankman-Fried had exploited her weaknesses.

Ellison, who has maintained a low profile due to harassment from the crypto community, expressed fear of public appearances. Her lawyers had sought to have her sentence limited to time served, but Judge Kaplan rejected the idea of letting her off without jail time.

The sentencing of Ellison sets the stage for further legal actions against other FTX executives. Co-defendants Gary Wang and Nishad Singh are scheduled for sentencing in the coming months, while Ryan Salame, another former FTX executive, was sentenced to seven and a half years in May. FTX founder Sam Bankman-Fried was sentenced to 25 years earlier this year.

The crypto world continues to watch as justice unfolds for those involved in one of the biggest financial scandals in recent history.