Caroline Ellison Set for January 21, 2026 Release After FTX Cooperation Agreement

Caroline Ellison, the former CEO of Alameda Research, is set to be released from federal custody on January 21, 2026, following a cooperation agreement in the FTX case. This release comes with a 10-year ban from the industry and ongoing supervision after her release.

Key Takeaways

Caroline Ellison's release date is set for January 21, 2026, after cooperating in the FTX case.
She received a two-year prison sentence in September 2024 for her role in the collapse of FTX.
Ellison has served less than half of her sentence and is currently under community confinement.
Her cooperation was crucial in the conviction of Sam Bankman-Fried on fraud charges.
She faces a 10-year prohibition from holding any director or officer roles in public companies or cryptocurrency exchanges after her release.

Caroline Ellison slated for early 2026 release after FTX case.

Background on Caroline Ellison's Sentence

In September 2024, Ellison received a two-year prison sentence due to her involvement in the downfall of the cryptocurrency exchange FTX. Federal records indicate that she has served less than half of her original sentence while in physical custody.

In October 2025, Ellison was moved from federal prison to community confinement, which usually involves either a halfway house or home confinement. She is currently supervised by a Residential Reentry Management field office in New York City, based on Bureau of Prisons data.

Cooperation and Sentence Reduction

Ellison's reduced custody period is primarily due to her cooperation with federal prosecutors. She was a key witness in the criminal case against Sam Bankman-Fried, who was convicted on several fraud charges and is now serving a 25-year prison sentence. Prosecutors noted that Ellison's testimony was vital in securing this conviction.

On December 19, 2025, she agreed to a 10-year ban that prevents her from serving as an officer or director of any public company or cryptocurrency exchange. This restriction limits her ability to engage in regulated financial and cryptocurrency-related activities.

Conclusion

Ellison’s upcoming release marks the end of the custodial part of her sentence, although she will still be under post-release supervision and regulatory limitations. Her case serves as a prominent example of how cooperation can lead to sentence reductions in the wake of the FTX collapse, which continues to shape discussions around regulation and compliance within the global cryptocurrency industry.