Caroline Ellison, the FTX fraudster, surrenders to Connecticut prison to start her 2-year sentence.

• The prosecution's key witness, Caroline Ellison, was admitted to a low-security federal prison in Connecticut's suburbs.
• Ellison was given a two-year prison term and instructed to relinquish $11 billion.
• In December 2022, Ellison, who managed the Alameda Research hedge fund linked to FTX, reached a plea deal, a month following the exchange's bankruptcy.

On Thursday, the Bureau of Prisons spokesman confirmed that Caroline Ellison, the key witness in the FTX founder Sam Bankman-Fried's prosecution, was admitted to a low-security federal prison in Connecticut.

In September, Ellison was given a two-year prison sentence and ordered to relinquish $11 billion for her part in the fraud and conspiracy that led to the collapse of the cryptocurrency exchange, which was previously worth $32 billion.

Judge Lewis Kaplan was recommended by the federal Probation Department to sentence Ellison to three years of supervised release without any time in prison, while defense lawyers also requested a punishment that did not involve imprisonment.

Although Kaplan commended Ellison's cooperation with prosecutors, which resulted in Bankman-Fried's conviction, the judge emphasized that her sentence should serve as a deterrent to prevent others from engaging in fraudulent activities.

Alameda Research, a sister hedge fund of FTX, was led by Ellison. Additionally, she was romantically involved with Bankman-Fried.

Alameda used a significant portion of the $8 billion in customer funds stolen by Bankman-Fried from FTX for its trading operation and other purposes.

In December 2022, a month after FTX's bankruptcy, Ellison reached a plea deal with prosecutors and pleaded guilty to conspiracy and financial fraud charges.

FTX was called the greatest financial fraud in U.S. history by Kaplan, who, during sentencing in Manhattan, stated that he could not agree to a "literal get-out-of-jail-free card."

Kaplan stated that he had witnessed numerous cooperators throughout his career, but none were as unique as Miss Ellison. He added that he believed Ellison was sincerely sorry for her actions and that her cooperation came at a high emotional cost.

Last month, Nishad Singh, a former executive of FTX, was given time served and three years of supervised release, making him the fourth ex-employee of the collapsed crypto exchange to be punished.

During her sentencing, Ellison tearfully read a statement and apologized to those she had harmed, expressing deep shame. She also expressed regret for not having the courage to leave FTX and Bankman-Fried.

Ellison was granted bail by Kaplan and allowed to remain free until surrendering to prison either on or after Nov. 7.

In March, Bankman-Fried was convicted of all seven criminal fraud charges against him and was sentenced to 25 years in prison. Additionally, he was ordered to pay $11 billion in forfeiture by Kaplan.

Both Zuckerberg and Musk were facing a similar statutory maximum sentence of approximately 110 years in prison for their offenses.

WATCH: FTX founder Sam Bankman-Fried appeals fraud conviction