Caroline Ellison, the former CEO of hedge fund Alameda Research and a central figure in the $11bn FTX cryptocurrency exchange scandal, has begun her two-year prison sentence in a Connecticut federal facility.

The 30-year-old surrendered to Danbury Federal Correctional Institution on 7 November, 2024, where she will remain until 20 July, 2026, as inmate number 36854-510 for her role in the fraud that brought down FTX – once valued at $32bn.

Ellison, who managed Alameda Research, played a key role in misappropriating billions in customer funds from FTX, which were used for high-risk trades and personal ventures.

In December 2022, Ellison struck a plea deal, admitting to conspiracy and fraud, which paved the way for the conviction of FTX founder Sam Bankman-Fried, who received a 25-year sentence. Her cooperation, involving nearly 20 meetings with prosecutors, was instrumental in unravelling the complex schemes that led to FTX’s collapse.

Bankman-Fried, convicted of wire fraud and money laundering, misused over $8bn in customer funds for personal investments and political donations. He is currently appealing his conviction.

Other FTX executives have also faced repercussions. Nishad Singh, FTX’s former Director of Engineering, received time served and three years of supervised release, while Ryan Salame, co-CEO of FTX’s Bahamian arm, was sentenced to 90 months for campaign finance violations.