Caroline Ellison was released on Wednesday after completing approximately 60% of her two-year prison sentence. The former co-CEO of Alameda Research was a key figure in the collapse of the cryptocurrency exchange FTX.
Before Ellison was released, the U.S. Securities and Exchange Commission (SEC) banned her from holding any leadership position for 10 years.
Early release
According to a statement from the U.S. Federal Bureau of Prisons, Ellison, 31, is currently residing at a reintegration support facility in New York. She will remain there while adjusting back to normal life. Centers like these help former prisoners reintegrate into society by assisting them in finding employment and rebuilding their daily lives.
Ellison was transferred to this facility in October 2025. Prior to that, she was incarcerated at a federal prison in Connecticut, where she began serving her two-year sentence in November 2024.
Ellison was released about 10 months earlier than expected. This was because she cooperated with the prosecution and complied well with prison regulations, resulting in a reduced sentence.
In a legal notice issued by the SEC last month, Ellison was barred from holding management or director positions at any publicly traded company for the next 10 years.
The management explained that the reason stemmed from previous allegations that Ellison played a central Vai in defrauding investors. This action helped FTX raise over $1.8 billion by promoting the exchange as a secure platform for trading digital assets.
The SEC also imposed similar restraining orders on other former FTX executives who cooperated with the investigation, including former CTO Gary Wang and former head of engineering Nishad Singh. Neither of them received prison sentences despite their involvement in the case.
Opinions on Crypto Twitter regarding Ellison's early release were divided.
Mixed reactions to Ellison's sentence.
Some Watcher have expressed skepticism about the sentence, which is considered relatively lenient given the magnitude of the offense and the negative impact Ellison had on the reputation of the crypto industry.
Compared to Ellison, her sentence was much lighter. FTX founder and former CEO Sam Bankman-Fried remains imprisoned with a 25-year sentence.
Although both were central figures in the collapse of FTX , Ellison and Bankman-Fried's legal journeys were very different.
Bankman-Fried chose to plead not guilty and went to trial. Subsequently, a jury convicted him on multiple serious charges, including wire fraud and conspiracy to commit fraud involving the misuse of client funds.
Conversely, Ellison proactively pleaded guilty to multiple charges of fraud and conspiracy, and cooperated with prosecution . Thanks to this cooperation, her sentence was significantly reduced.
In his testimony, Ellison confirmed that Alameda Research and FTX had mixed client assets, concealed growing losses, and used unlimited credit lines to give Alameda direct access to FTX client deposits.
Ellison's release also closes the legal chapter surrounding the senior leadership at FTX and Alameda Research – those who contributed to the 2022 crypto winter .
For Bankman-Fried, the chances of early release are very low.
In a recent interview, US President Donald Trump affirmed that he has no intention of pardoning Bankman-Fried. Although Bankman-Fried is appealing his sentence , the possibility of a retrial remains very slim.
