FTX’s Caroline Ellison Quietly Released: 11 Months Behind Bars For One Of Crypto’s Biggest Collapses

Caroline Ellison released early after FTX collapse, aiding conviction of Sam Bankman-Fried through Alameda CEO testimony.

Caroline Ellison, former CEO of Alameda Research, has been released to community confinement after serving approximately eleven months of her crypto fraud prison sentence tied to the FTX collapse. 

Ellison’s cooperation with prosecutors in the $11 billion fraud case against Sam Bankman-Fried played a key role in securing convictions. Her projected release date is now February 20, 2026, nearly nine months earlier than initially scheduled.

Transfer to Community Confinement

The Federal Bureau of Prisons confirmed that Caroline Ellison released now serves her sentence under less restrictive conditions, including home confinement or a residential reentry center.

The spokesperson for the Bureau of Prisons emphasized that specific details of her community confinement crypto placement remain private.

Ellison moved from the Danbury Federal Correctional Institution in Connecticut on October 16, 2025. She had pleaded guilty to conspiracy and financial fraud charges linked to FTX customer funds and Alameda Research.

Her plea agreement in December 2022 followed the crypto exchange collapse 2025 and FTX’s bankruptcy filing.

The federal judge emphasized the need for deterrence but acknowledged Ellison’s cooperation with prosecutors. She was sentenced to two years in prison and ordered to forfeit $11 billion. 

Role in the FTX Case

As Alameda CEO, Ellison managed the firm’s use of FTX customer funds for trading and other financial operations. During the trial of Sam Bankman-Fried, she provided critical testimony that helped prosecutors expose the $11 billion crypto fraud scheme. 

The federal judge described her cooperation as extensive and emotionally taxing but acknowledged it in her crypto fraud sentencing.

Related Readings:  FTX Creditors Face Major Shortfall Despite Promised 143% Repayment

Statements and Court Appearances

Before her sentencing, Ellison apologized for her actions, expressing regret for the harm caused to FTX customers and stakeholders. While the judge emphasized the importance of deterrence, Ellison’s early transfer to community confinement reflects her extensive cooperation. 

Other former FTX executives, including Nishad Singh, received similar sentences, while Sam Bankman-Fried was sentenced to 25 years and ordered to forfeit $11 billion.

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