A woman is facing a lengthy prison sentence due to the collapse of a cryptocurrency company.
Per The Washington Post, Caroline Ellison could be looking at a 110-year prison sentence after she pleaded guilty to aiding the collapse of FTX Trading, as well as several other companies under the reign of CEO Sam Bankman-Fried.
It was first reported that FTX, along with Alameda Research, as well as 130 other associated companies filed for bankruptcy on November 11 after some financial difficulties which led to investors withdrawing their funds from the businesses.
Customers were also left helpless as many of them were unable to access their funds during the tumultuous time and without a bail-out plan in place, Bankman-Fried was left with no other option but to file for Chapter 11 bankruptcy.
According to CNBC, the CEO whose net worth was $16 billion at the hight of his career, was arrested in the Bahamas last month, with regulators stating that this decision was necessary in order to hold individuals accountable for the multibillion-dollar implosion of FTX.
In a statement, Bahamian Prime Minister Philip Davis said: "The Bahamas and the United States have a shared interest in holding accountable all individuals associated with FTX who may have betrayed the public trust and broken the law."
"While the United States is pursuing criminal charges against SBF individually, The Bahamas will continue its own regulatory and criminal investigations into the collapse of FTX, with the continued cooperation of its law enforcement and regulatory partners in the United States and elsewhere," the statement added.
After the demise of their leader, other associates including Ellison as well as FTX's co-founder, Gary Wang, are now looking at a similar fate.
The former CEO of Alameda Research could be facing 110 years in prison after agreeing to a plea deal with prosecutors, having faced seven charges including wire fraud, conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering.
The combined maximum sentences for these charges accumulates to approximately 110 years.
As per official plea documents, the 28-year-old will be pleading guilty to all seven charges as well as forced to pay restitution - a large sum that has not yet been determined by the courts.
In exchange for the deal, Ellison, along with Wang, will have to comply with the ongoing investigation into the collapse of the company and the "ultimate betrayal of public trust."
