Caroline Ellison, the key witness in the trial of her ex-boyfriend, FTX founder Sam Bankman-Fried, was sentenced by a New York federal court on Tuesday to two years in prison and an $11 billion fine for her role in the massive fraud and conspiracy that brought down the once $32 billion cryptocurrency exchange.

The prison sentence was significantly harsher than the recommendation of the Federal Parole Board, which wanted to sentence Ellison to three years' probation and no prison time.

Defense attorneys had also called for a prison sentence without jail for Ellison, who ran Alameda Research, a hedge fund affiliated with FTX.

While Kaplan praised Ellison for her extensive cooperation with prosecutors – which led to Bankman-Fried's conviction – the judge said her sentence should deter other potential wrongdoers from committing fraud.

A “literal get-out-of-jail-free card that I cannot agree with,” Kaplan said in U.S. District Court in Manhattan.

“I have met many cooperators over the years, but never one like Miss Ellison,” said Kaplan, who also said he believes Ellison is sincerely sorry for her crimes and that her cooperation has taken a great emotional toll on her.

Ellison reached a deal with prosecutors in December 2022, a month after FTX filed for bankruptcy. She pleaded guilty to conspiracy and financial fraud.

Bankman-Fried, on the other hand, chose to go to trial and was found guilty on all seven fraud charges against him in the same courthouse where she was convicted.

In March, he was sentenced to 25 years in prison and ordered to pay a fine of $11 billion.

Bankman-Fried has since appealed his conviction and requested a retrial before a different judge, arguing that Kaplan was biased against him.

Late Monday, Ellison's lawyers said in a court filing that they had reached financial settlements with prosecutors and the FTX debtor's estate.

Both Bankman-Fried and Ellison faced the same statutory maximum sentence of about 110 years in prison for their crimes.

But defendants in criminal cases who cooperate with prosecutors rather than contest the charges – particularly in white collar crimes like FTX – often receive more lenient sentencing sentences.

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