Caroline Ellison was released from prison on Wednesday after serving 60% of her approximately two-year sentence. The former co-CEO of Alameda Research played a significant role in the events that led to the collapse of the FTX cryptocurrency exchange.
Ahead of Mr. Ellison's release, the U.S. Securities and Exchange Commission (SEC) has prohibited him from serving as an officer of any company for the next ten years.
Earlier than scheduled release
According to the Federal Bureau of Prisons, the 31-year-old is currently in a rehabilitation facility in New York. He is expected to spend a transitional period here aimed at reintegration into society. Such facilities play a role in supporting employment for former inmates and reintegration into daily life.
Mr. Ellison was transferred to this facility in October 2025. Prior to that, he was incarcerated in a federal prison in Connecticut, where he had begun a 2-year prison term since November 2024.
The timing of the release was about 10 months earlier than initially planned. Cooperation with prosecutors and compliance with prison rules were reasons for the reduced sentence.
According to a lawsuit release from the SEC announced last month, Mr. Ellison has been barred from serving as an officer or director of a publicly traded company for the next 10 years.
The SEC cited past indictments stating that Mr. Ellison played a central role in deceiving investors. His actions allegedly allowed FTX to present itself as a safe exchange for cryptocurrency, successfully raising over $1.8 billion.
The SEC also imposed similar prohibitions on other former FTX executives, former CTO Gary Wang and former engineering head Nishad Singh. Both cooperated with the investigation and avoided prison sentences.
Regarding Mr. Ellison's early release, there were various reactions on social media related to cryptocurrency.
The verdict against defendant Ellison has sparked mixed opinions.
Some voices argued that the treatment was excessively lenient compared to the actual circumstances. The scale of Mr. Ellison's misconduct and its significant impact on the loss of trust in the cryptocurrency industry have been pointed out.
On the other hand, Mr. Ellison's sentence is relatively light. FTX founder and former CEO Sam Bankman-Fried is still incarcerated, serving a 25-year sentence.
Both individuals are central figures in the collapse of FTX, but the legal circumstances differ.
Defendant Bankman-Fried pleaded not guilty and went to trial, where the jury found him guilty on multiple felony charges. The verdict included charges of wire fraud and conspiracy related to the misappropriation of customer funds.
In contrast, Mr. Ellison acknowledged guilt on multiple counts of fraud and conspiracy and cooperated with prosecutors. This cooperation led to a significant reduction in his sentence.
In court testimony, Mr. Ellison stated that Alameda Research and FTX improperly commingled customer assets, concealed losses, and utilized an unlimited credit line that allowed direct access to FTX customer deposits.
Mr. Ellison's release effectively resolved the legal issues surrounding FTX and Alameda Research executives. This series of actions triggered the cryptocurrency market downturn in 2022.
As for defendant Bankman-Fried, the possibility of early release is low.
In a recent interview, President Trump stated that he is not considering a pardon for defendant Bankman-Fried. Although Bankman-Fried is currently appealing the verdict, the prospects for a retrial are slim.
