Caroline Ellison was released from custody after serving about 60% of her two-year sentence. The former CEO of Alameda Research played a key role in the events that led to the collapse of the FTX cryptocurrency exchange.
Before her release, Caroline Ellison was banned by the U.S. Securities and Exchange Commission (SEC) from holding any executive positions for ten years.
Early release
According to the Federal Bureau of Prisons, 31-year-old Ellison is currently in a specialized center in New York, where she will undergo a transition back to normal life. Such institutions help former inmates to socialize, find jobs, and adapt to everyday life.
In October 2025, Ellison was transferred to this center. Prior to that, she was serving her sentence in a federal prison in Connecticut, having begun her two-year sentence in November 2024.
The release took place about ten months earlier than scheduled. This happened due to Ellison's cooperation with the investigation and compliance with all the requirements of the prison administration.
Last month, the SEC issued a press release prohibiting Ellison from holding director or executive positions in public companies for ten years.
The agency reminded of previous charges. According to the SEC, Ellison made a significant contribution to the misinformation of investors. Thanks to these actions, FTX managed to attract over $1.8 billion, positioning the platform as a safe platform for trading crypto assets.
Similar restrictions were imposed by the SEC on other former top managers of FTX who cooperated with the investigation. This includes former CTO Gary Wang and former engineering head Nishad Singh. They avoided punishment in the form of imprisonment despite their involvement in the exchange's collapse.
In the crypto community, opinions on Ellison's early release were mixed.
Opinions on the sentence were divided
Some observers consider the sentence too lenient given the scale of the harm caused and how the situation affected trust in the crypto industry.
By comparison, FTX founder and former CEO Sam Bankman-Fried is still in custody and serving a 25-year sentence. This is despite the fact that both were key figures in the FTX collapse.
Bankman-Fried did not plead guilty and went to a jury trial. He was later found guilty on several counts, including fraud and conspiracy to commit fraud related to the misappropriation of customer funds.
Unlike him, Ellison pleaded guilty to several counts of fraud and conspiracy, and cooperated with the investigation. This allowed her to receive a significantly lighter sentence.
During her testimony, Ellison stated that Alameda Research and FTX mixed client assets, concealed growing losses, and used an unlimited credit line that gave Alameda direct access to FTX customer deposits.
Ellison's release effectively concluded the judicial saga surrounding the top managers of FTX and Alameda Research, whose actions largely predetermined the crypto winter of 2022.
Bankman-Fried's chances of early release are considered extremely low.
Recently, Donald Trump, the President of the United States, stated in an interview that he does not intend to pardon Bankman-Fried. Despite Bankman-Fried's attempts to appeal the sentence, the likelihood of a new trial remains minimal.
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