Caroline Ellison, who was the star witness against Sam Bankman-Fried, was sentenced for her role in the FTX fraud case.
Transcript:
CONWAY GITTENS: Here’s what we’re watching on TheStreet today.
Housing is in focus on Wall Street as investors keep an eye on falling interest rates. Mortgage applications for the week ended September 20th jumped 11 percent, according to the Mortgage Bankers Association. The mortgage rate on a traditional 30-year fixed loan fell to 6.13 percent. Meanwhile, new home sales dropped 4.7 percent in August, according to data from the Commerce Department, but are up nearly 10 percent from a year ago. The median sales prices dropped to $420,600. And, KB Home posted mixed quarterly results. Earnings missed forecasts but sales beat analysts targets.
In other news: Caroline Ellison, the ex-girlfriend of infamous FTX founder Sam Bankman-Fried, whose testimony helped put him behind bars- is going to jail herself.
Ellison was sentenced to two years in prison and ordered to forfeit $11 billion for her role in the massive fraud that brought down the cryptocurrency exchange once worth $32 billion.
The judge had stern words for Ellison, telling her that her cooperation in the case could not be used as a “get out of jail free card.” He told her, “There’s no way you’re ever going to do something like this again, I am persuaded. But here’s the thing: this was, if not the very greatest financial fraud ever perpetrated in this country or anywhere else, close to it.”
Ellison ran Alameda Research, an arm of Bankman-Fried’s crypto empire, and helped him steal $8 billion in customer money. She pled guilty to seven felony counts of fraud and conspiracy, which carried a maximum prison term of 110 years. She’ll be allowed to stay out on bail until she reports to prison in early November.
For his role, Bankman-Fried, is currently serving a 25-year sentence.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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