TLDR
- Caroline Ellison, former co-CEO of Alameda Research, will be released from federal custody on Wednesday.
- Ellison has spent nearly a year in custody, with her sentence beginning in November 2024.
- She was transferred to a “residential reentry management” facility in October 2025.
- Ellison pled guilty to multiple charges related to the collapse of FTX and Alameda Research.
- Her cooperation with the government and testimony against Sam Bankman-Fried contributed to her early release.
Caroline Ellison, the former co-CEO of Alameda Research, is set for release from federal custody this Wednesday. After nearly a year behind bars, she will leave a “residential reentry management” facility in New York. These halfway houses provide inmates with services like job placement and financial management before their full release.
Ellison’s release comes after she pled guilty to multiple charges related to the collapse of FTX. She cooperated with the authorities and testified against Sam Bankman-Fried during his trial in 2023.
Caroline Ellison’s Time in Custody
Caroline Ellison began her two-year sentence in November 2024 at a federal prison in Connecticut. In October 2025, she was transferred to community confinement, where she has remained. The Federal Bureau of Prisons confirmed her release date this week, marking the end of her time in custody.
The transition to community confinement typically serves as a step toward full reintegration into society. Ellison’s cooperation with law enforcement likely contributed to her early release. She has been living under restrictions at a facility that helps prepare her for life after prison.
FTX and the Fall of Alameda Research
Caroline Ellison was a central figure in the downfall of FTX, a major cryptocurrency exchange, and its affiliate, Alameda Research. She was the co-CEO of Alameda, which played a crucial role in FTX’s operations. Both entities were closely tied until the liquidity crisis and fraud allegations led to their bankruptcy in late 2022.
Ellison pled guilty to several serious charges in December 2022, including conspiracy to commit wire fraud and money laundering. She admitted to using customer deposits from FTX to fund Alameda’s operations and personal expenses. Her testimony during Bankman-Fried’s trial revealed that he directed her to engage in these illegal activities.
Legal Ramifications and the Future
While Ellison’s sentence is nearly over, the legal ramifications of her involvement in the FTX collapse are ongoing. The U.S. Securities and Exchange Commission (SEC) has moved to bar her, along with two other former FTX executives, from serving as officers or directors of any public company. This legal restriction underscores the lasting consequences of the scandal surrounding FTX and Alameda Research.
Ellison’s cooperation with the government helped in the conviction of Sam Bankman-Fried, who was sentenced to nearly 25 years in prison. However, the aftermath of the FTX collapse continues to unfold in the legal system.
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