Former Alameda Research CEO Caroline Ellison is no longer in federal prison. According to Business Insider and the U.S. Federal Bureau of Prisons (BOP), she has been transferred to so-called “supervised release,” which may involve either house arrest or placement in a reintegration center where inmates prepare to return to normal life.
Ellison’s sentence in connection with the collapse of the FTX cryptocurrency exchange and the related bankruptcy of approximately $11 billion has been significantly reduced. Instead of the originally assigned two-year term, her actual sentence has been shortened to nine months. According to BOP records, her potential early release date is listed as February 20, 2026.
Caroline Ellison is currently registered at the New York Reintegration Office (New York RRM). These offices oversee inmates who are transitioning from prison to more lenient forms of supervision. A spokesperson for the Federal Bureau of Prisons confirmed that Ellison’s confinement conditions had been changed but declined to specify the details of her location or the format in which she is serving the remainder of her sentence.
The agency emphasized that such transfers are standard practice for inmates convicted of less severe charges and awaiting early release. As BOP spokesperson Randilee Jamusso noted, the agency does not disclose information about the reasons for transfer, release plans, or the specific location of individuals under supervision, citing security and privacy concerns.
Caroline Ellison has been transferred out of federal prison. AP Photo/Eduardo Munoz Alvarez
Caroline Ellison became one of the key figures in the FTX criminal case. She admitted participation in a scheme to illegally divert client funds from the exchange and agreed to cooperate with the investigation, becoming the principal prosecution witness against former FTX CEO Sam Bankman-Fried. Her testimony played a significant role in building the case, which became one of the most high-profile financial scandals in cryptocurrency history.
In late September 2024, the court sentenced Ellison to two years in prison. She began serving her sentence in early November 2024 at the low-security Federal Correctional Institution in Danbury. As part of a plea agreement, Ellison also agreed to transfer all of her assets to repay FTX creditors. According to media reports, after this transfer, she retained virtually no personal property.
At the time of publication, neither Caroline Ellison nor her attorneys had provided public comments regarding the transfer to supervised release and potential early release. Her status continues to attract attention amid ongoing repercussions of the FTX collapse and related legal proceedings involving the exchange’s former leadership.
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