Caroline Ellison, Former Alameda CEO, Set for Early Release in January 2026

Caroline Ellison, who previously held the position of co-CEO at Alameda Research, is slated to be released from federal custody on January 21, 2026, as per information from the U.S. Federal Bureau of Prisons.

Key Takeaways:

Caroline Ellison, the former co-CEO of Alameda Research, is expected to be released on January 21, 2026, approximately 10 months earlier than her full sentence.
Ellison pleaded guilty related to the FTX collapse and aided prosecutors in securing the conviction of Sam Bankman-Fried.
Her early release is a result of her cooperation and good behavior, but she will face a 10-year ban and will be under supervision following her release.

Ellison, aged 31, has been in community confinement since October 2025 after being moved from a federal prison located in Connecticut, as reported by Business Insider earlier this month.

Her scheduled release date comes about 10 months sooner than the two-year sentence handed down by the court.

Caroline Ellison, Former Alameda CEO, Set for Early Release in January 2026

Background on Ellison’s Plea in the FTX Scandal

In December 2022, Ellison entered a guilty plea to charges of fraud and conspiracy tied to the collapse of the cryptocurrency exchange FTX, founded by Sam Bankman-Fried.

The downfall of FTX caused billions in losses for customers and became one of the largest scandals in the cryptocurrency sector.

As part of her plea deal, Ellison cooperated significantly with federal prosecutors, serving as a key witness during Bankman-Fried’s criminal trial.

Her testimony shed light on how Alameda and FTX mixed customer funds and hid financial deficiencies, evidence that played a pivotal role in Bankman-Fried’s multiple fraud convictions. He was subsequently sentenced to 25 years in prison.

In September 2024, U.S. District Judge Lewis Kaplan sentenced Ellison, ordering her to forfeit $11 billion and serve a two-year prison sentence starting in November 2024.

Her earlier release aligns with good-conduct credits and her collaboration with investigators. In a pre-sentencing filing, John J. Ray III, the CEO overseeing FTX's bankruptcy process, noted that Ellison provided "valuable assistance" that helped recover hundreds of millions of dollars in assets for creditors. These efforts are crucial in the ongoing attempts to reimburse customers affected by the FTX collapse.

Earlier this month, Ellison also accepted a 10-year prohibition from serving as an officer or director in public companies or cryptocurrency exchanges.

Upon her release, she will be under supervised release, restricting her future participation in regulated financial businesses.

Developments Surrounding Bankman-Fried

In contrast, Sam Bankman-Fried is actively seeking post-conviction relief. He is pursuing clemency from U.S. President Donald Trump, who has previously granted high-profile pardons in the cryptocurrency realm, including for former Binance CEO Changpeng Zhao.

Bankman-Fried argues that his prosecution was politically driven, a claim that prosecutors have dismissed.

Records from the Bureau of Prisons indicate that Bankman-Fried is currently scheduled for release in September 2044, highlighting the significant disparity in outcomes between him and Ellison.