Caroline Ellison Released From Federal Prison After Serving Sentence in FTX Collapse Case

Caroline Ellison, the former CEO of Alameda Research and a key cooperating witness in the high-profile FTX prosecution, has been released from federal prison after serving approximately 14 months of a two-year sentence, according to records from the U.S. Bureau of Prisons. Ellison, now 31, pleaded guilty in late 2022 to multiple fraud and conspiracy charges connected to the misuse of FTX customer funds, one of the largest financial scandals in cryptocurrency history.

Ellison was sentenced in 2024 after providing extensive testimony against Sam Bankman-Fried, the founder of FTX, whose actions ultimately led to the dramatic collapse of the crypto exchange. Bankman-Fried was convicted on multiple counts of fraud and conspiracy and received a 25-year federal prison sentence, which he is currently serving at a low-security facility in the Los Angeles area. The stark contrast between Ellison’s early release and Bankman-Fried’s lengthy sentence highlights the significant role her cooperation played in the government’s case.

During the final portion of her incarceration, Ellison was placed in the Bureau of Prisons’ Residential Reentry Management program. This halfway house arrangement allows inmates to serve the end of their sentences under supervision while receiving support services such as career counseling, job placement assistance, and financial management guidance, all designed to help ease reintegration into society.

The downfall of FTX was triggered after investigative reporting revealed that Alameda Research was heavily backed by FTX’s own native token and had secretly relied on billions of dollars in customer funds. Once these details became public, confidence in the exchange evaporated, sparking a liquidity crisis that led to FTX’s bankruptcy and sent shockwaves through the global crypto market.

As part of her plea agreement and related settlements with the U.S. Securities and Exchange Commission, Ellison agreed to forfeit roughly $11 billion in assets linked to the fraud. She also accepted a 10-year ban from serving as an officer or director of any company, effectively sidelining her from corporate leadership roles for the next decade.

Public interest in the FTX saga remains strong. The story is set to be dramatized in an upcoming Netflix limited series titled The Altruists, starring Julia Garner as Caroline Ellison and Anthony Boyle as Sam Bankman-Fried. The series is expected to explore the rapid rise and catastrophic fall of FTX, further cementing the case as one of the most infamous scandals in crypto history.