Caroline Ellison, 31, has been released from federal custody after serving about 14 months of a 24-month sentence for her role in the FTX fraud. She pleaded guilty to seven counts, cooperated extensively with prosecutors and testified against Sam Bankman‑Fried, who received a 25‑year sentence. Judge Lewis Kaplan praised her cooperation but imposed jail time and ordered an $11 billion forfeiture. Ellison served time in Connecticut and was later moved to community confinement.
Caroline Ellison Released From Federal Custody After About 14 Months; Testified Against Sam Bankman‑Fried
Caroline Ellison leaves Manhattan federal court after testifying during the trial of Sam Bankman-Fried in October 2023.Photograph: Michael M Santiago/Getty Images(Photograph: Michael M Santiago/Getty Images)
Caroline Ellison, the former head of Alameda Research tied to the collapse of cryptocurrency exchange FTX, has been released from federal custody after serving roughly 14 months of a 24-month sentence in the multibillion-dollar fraud case.
Ellison, 31, pleaded guilty in 2024 to seven counts, including wire fraud and money laundering. She cooperated extensively with prosecutors and served as a key witness in the trial of FTX founder Sam Bankman‑Fried, testifying that he directed her to carry out illegal activity. Bankman‑Fried was later sentenced to 25 years in prison.
At sentencing, U.S. District Judge Lewis Kaplan praised the scope of Ellison’s cooperation, saying he had never seen similar assistance in his 30 years on the bench, but concluded that the severity of the offenses warranted incarceration. The judge ordered Ellison to forfeit $11 billion in assets.
Ellison began her term in a Connecticut federal prison before being transferred in October to community confinement, according to the Bureau of Prisons. She left the confinement facility on Wednesday.
Why It Matters
The collapse of FTX, once among the world’s largest crypto platforms, triggered one of the largest U.S. financial-fraud investigations in recent history, unsettled markets and prompted renewed regulatory scrutiny of the cryptocurrency industry. Prosecutors have described the case as an alleged $8 billion fraud that relied on improper transfers between the exchange and Alameda Research.
Ellison’s digital footprint and public statements — including earlier social-media posts and personal disclosures — drew intense attention and fueled media coverage throughout the investigation and trial. Her testimony, along with that of other former FTX executives, produced some of the most dramatic moments in the courtroom.
Outside the courtroom, the FTX saga has attracted cultural attention: Netflix announced a dramatization of the collapse, with Julia Garner cast to portray Ellison.
Bankman‑Fried remains incarcerated in a low-security federal prison in Los Angeles. He sought a presidential pardon last year and gave a high-profile interview from jail with media personality Tucker Carlson; President Donald Trump has since said he does not plan to grant a pardon.
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