Caroline Ellison, former CEO of Alameda Research and a central figure in the FTX scandal, currently serving time for her role in the multibillion-dollar fallout, is set to be released early next month.
According to information from the US Federal Bureau of Prisons, Ellison’s release date is currently listed as January 21, 2026.
She has been residing in a New York-based community confinement facility since her transfer from a federal prison in Connecticut in October 2025.
Ellison was originally expected to remain under supervision until February 20 as per her initial release date.
The reason for the shortened four-week timeline was not publicly specified.
Ellison’s role in the FTX fallout and prosecution
Ellison was among the key insiders involved in the estimated $8 billion fallout of the FTX cryptocurrency exchange, which collapsed in November 2022 after revelations of deeply entangled financial practices between FTX and its sister firm, Alameda Research.
The incident is considered one of the largest financial frauds in recent US history and sent ripples throughout the entire crypto market as it took down many lending firms and exposed a fragile industry infrastructure, ultimately affecting millions of investors worldwide.
Ellison initially joined Alameda as a trader and later took over from Sam Bankman-Fried as CEO, where she oversaw the firm’s high-risk strategies and trading decisions.
She was also known to have briefly dated FTX CEO and founder Sam Bankman-Fried, a relationship that later came under intense scrutiny during the criminal investigation and trial.
According to charges filed against her by federal prosecutors, Ellison and other executives engaged in a scheme to illegally divert billions in customer deposits from FTX to Alameda to cover trading losses and outstanding liabilities.
Prosecutors claim Ellison was fully aware of Alameda’s special privileges on the FTX platform and admitted that she was involved in manipulating financial statements to mislead lenders about the firm’s solvency.
She was charged with wire fraud, securities fraud, and money laundering, along with other executives, though her legal team and prosecutors pushed for a lighter sentence due to her cooperation.
After the collapse of FTX, Ellison briefly stayed in Hong Kong before deciding to return to the United States and cooperate with authorities by testifying against Bankman-Fried.
Before her arrest was made public, she had already pleaded guilty to seven criminal counts and admitted her role in orchestrating the fraudulent activities.
During her plea hearing, the court noted that she expressed genuine remorse for her actions, which the judge acknowledged as substantial and helped reduce her sentence to two years—far less than the decades she could have faced.
Ellison’s testimony was considered a key turning point in securing Bankman-Fried’s conviction on all seven counts of fraud and conspiracy.
Other executives who did not cooperate with prosecutors or served in less central roles have received longer sentences.
As a part of her plea deal, she has also agreed to a 10-year ban from serving in any capacity as an officer or director of a public company or cryptocurrency exchange.
FTX mastermind set to be released in 2044
While Ellison will be out of federal custody next month, Bankman-Fried will continue to serve his sentence as he awaits the outcome of his pending appeal.
If unsuccessful, his release date, based on the 25-year sentence he received in March 2024, is set for September 2044.
In the meantime, he is actively seeking a presidential pardon from US President Donald Trump, who has recently pardoned notable figures such as former Binance CEO Changpeng Zhao.
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