(This story has been updated to include new details.)

The repercussions of the massive fraud that led to the bankruptcy of FTX and disrupted various markets two years ago continued on Tuesday, as former crypto executive Caroline Ellison received a two-year prison sentence.

Ellison, once the CEO of Alameda Research, a hedge fund connected to FTX, and who later turned to romance writing, expressed deep remorse for her involvement in the fraud. Prosecutors noted that her cooperation significantly aided in the conviction of FTX founder and her ex-boyfriend, Sam Bankman-Fried, in 2023.

Despite facing a maximum penalty of 110 years, Ellison was given a significantly lighter sentence.

“She chose to help, while he chose to deny everything,” said U.S. District Judge Lewis Kaplan. “He went to trial, which is his right, but it did not go well for him. A large part of this was because Ms. Ellison cooperated.”

Ellison’s sentencing marks a complex chapter in her life, where she had previously been known for her charitable ambitions in the cryptocurrency field. In her testimony against Bankman-Fried, she spoke of a disordered atmosphere where deception and theft were rationalized for a perceived greater good, and she felt a release when the situation eventually collapsed.

“I think about all the people I have harmed every single day,” Ellison stated in court. “It’s hard to grasp the extent of the damage I’ve caused, but I do make an effort to understand it.”

Who is Caroline Ellison?

Ellison was a high-achieving student and the daughter of a professor at MIT, growing up in Boston. She studied mathematics at Stanford and adopted an “effective altruism” approach, which focuses on quantitative analysis to maximize the impact of charitable contributions.

Ellison met Bankman-Fried, who shared a similar academic background and belief in effective altruism, while he was mentoring her intern group at a Wall Street trading company. They began a romantic relationship and she later became a key figure in his now-fallen cryptocurrency empire.

Subsequent to the FTX crisis, Ellison admitted guilt to seven felony charges encompassing fraud and conspiracy.

In March, Bankman-Fried received a sentence of 25 years for misappropriating around $8 billion from clients of his defunct cryptocurrency platform. This month, he filed an appeal for a retrial with a different judge, claiming he was not given a fair hearing last year.

Overview of the FTX Fraud Scandal

FTX, short for “Futures Exchange,” capitalized on a surge in cryptocurrency values during the COVID pandemic that led to Bankman-Fried being recognized as a billionaire by Forbes.

He experienced the heights of success until his business faced significant decline and declared bankruptcy in 2022. The following year, a jury found that much of his empire was fraudulent.

Bankman-Fried was charged with misappropriating customer funds from FTX to support Alameda Research, which he established and that Ellison led from 2021-2022.

Ellison’s Involvement in the Fraud Scandal

During Bankman-Fried’s trial, Ellison testified that he instructed her to withdraw money from unsuspecting FTX customers. In an emotional testimony, she shared her regret and expressed that she felt “indescribably bad” about her role in the scheme.

“I felt relieved that I didn’t have to lie any longer,” she recounted.

Bankman-Fried’s defense attorney, Mark Cohen, argued during closing remarks that Ellison was attempting to shift blame onto Sam after the collapse of the company.

Ellison’s defense team contended she should not serve any time behind bars because of her extensive cooperation with the prosecutors. The U.S. Attorney’s office in Manhattan also recommended leniency in a letter to the judge, praising her “extraordinary” assistance in convicting Bankman-Fried and her acknowledgment of her wrongdoings.

Reuters contributed to this report. Reach Rachel Barber  on Twitter, at @rachelbarber_