Early release follows cooperation in FTX investigations and sentencing agreement
Caroline Ellison, former co-CEO of Alameda Research, is scheduled to be released from federal custody on January 21, 2026, after serving part of a two-year sentence for her role in the collapse of the FTX crypto exchange. Her early release reflects cooperation with federal authorities and contributions to recovering assets for creditors.
Ellison, 31, pleaded guilty in December 2022 to fraud and conspiracy charges related to the 2022 FTX collapse, which led to billions in customer losses. She testified against FTX founder Sam Bankman-Fried, who received a 25-year prison sentence.
In September 2024, U.S. District Judge Lewis Kaplan sentenced Ellison to forfeit $11 billion. She began her prison term in November 2024 but was moved to community confinement in October 2025, allowing for early release based on good conduct and cooperation.
Ellison’s assistance reportedly helped recover hundreds of millions of dollars for FTX creditors. The FTX bankruptcy estate highlighted her cooperation as “valuable,” emphasizing her role in asset recovery during investigations.As part of her sentence terms, Ellison agreed to a 10-year ban on serving as an officer or director of public companies or cryptocurrency exchanges. She will remain under supervised release after leaving custody.
Meanwhile, Bankman-Fried continues to seek clemency while serving his sentence, currently scheduled for release in September 2044. His appeals claim political motives behind his prosecution, contrasting with Ellison’s cooperation and early release.
Ellison’s upcoming release marks a significant milestone in the ongoing legal aftermath of the FTX collapse and signals continued enforcement and oversight within the cryptocurrency sector.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.