Caroline Ellison, former CEO of Alameda Research and ex-partner of Sam Bankman-Fried, was released from Federal Bureau of Prisons custody on 22 January after approximately 14 months of incarceration. Ellison was sentenced to two years in prison in September 2024 after pleading guilty to seven counts, including wire fraud and money laundering, for her role in an $11 billion fraud scheme.
Ellison began her sentence at a Connecticut federal prison before being transferred in October — after serving roughly 11 months — to community confinement at a New York residential reentry facility. Her original projected release date of 20 February was brought forward by approximately one month through good-conduct credit eligibility. Judge Lewis Kaplan commended Ellison at sentencing for cooperation unprecedented in his 30 years on the bench, but declined to grant the zero prison time her attorneys had requested, citing the severity of the crimes. Ellison served as the key prosecution witness in Bankman-Fried's 2023 criminal trial, testifying that her former partner directed the misappropriation of customer funds through Alameda Research's unlimited credit facility. The SEC last month sought a 10-year officer and director bar against Ellison, while former FTX technology chief Gary Wang and engineering leader Nishad Singh avoided imprisonment through their own cooperation agreements.
Bankman-Fried continues to serve his 25-year sentence at a low-security federal prison near Los Angeles, with his appeal pending before the Second Circuit Court of Appeals, while President Trump told The New York Times this month that he has no plans to grant a pardon.
Sources:
- https://www.theguardian.com/technology/2026/jan/22/ftx-crypto-executive-caroline-ellison-prison-release
- https://www.businessinsider.com/ftx-exec-caroline-ellison-prison-release-2026-1
- https://coinmarketcap.com/academy/article/former-alameda-ceo-caroline-ellison-freed-from-federal-custody-after-14-months
