Caroline Ellison, the former CEO of Alameda Research, is set to be released from federal custody on January 21, 2026, as confirmed by recent updates from the Federal Bureau of Prisons. This new release date is approximately four weeks earlier than the previously anticipated timeline in February.
Ellison received a two-year prison sentence in September 2024 for her involvement in the disastrous collapse of FTX. Notably, she has served less than half of her sentence in actual custody. In October 2025, she was transitioned from federal prison to community confinement, which typically involves either a halfway house or home confinement. Currently, she is being monitored by a Residential Reentry Management field office located in New York City.
The reason for her expedited release can be largely attributed to her significant cooperation with federal prosecutors. Ellison played a pivotal role as a key witness in the criminal proceedings against Sam Bankman-Fried, who was found guilty on multiple counts of fraud and is now serving a 25-year sentence. Prosecutors have publicly acknowledged that her testimony was instrumental in achieving Bankman-Fried”s conviction.
Despite her upcoming release, Ellison will continue to face long-term professional limitations. On December 19, 2025, she accepted a 10-year ban from holding any officer or director positions in both public companies and cryptocurrency exchanges. This ban significantly restricts her ability to engage with regulated financial or crypto-related enterprises.
Ellison”s release marks the end of her custodial sentence but will still subject her to post-release supervision and ongoing regulatory constraints. Her case remains a prominent example of how cooperation with authorities can lead to reduced sentences, particularly in the context of the FTX collapse. The repercussions of the FTX incident continue to influence discussions around regulation, compliance, and legal standards within the global cryptocurrency sector.
