Caroline Ellison has quietly left federal prison walls. The former Alameda Research CEO was moved to community confinement. She now resides in either a halfway house or home detention.
The 31-year-old began her sentence in November 2024. She entered Danbury Federal Correctional Institution in Connecticut. Her transfer occurred on October 16, records confirm.
Star Witness Gets Early Freedom
SBF's ex-girlfriend played a critical role in his trial. She testified against Sam Bankman-Fried during his 2023 criminal proceedings. Her cooperation proved crucial to federal prosecutors.
Ellison received a two-year prison term from U.S. District Judge Lewis Kaplan. The judge praised her cooperation as substantial. However, he insisted incarceration remained necessary given the crime's severity.
Federal Bureau of Prisons spokesperson Randilee Giamusso confirmed the transfer. She declined to specify Ellison's exact location. Privacy and security protocols prohibit such disclosures, Giamusso explained.
Ellison pleaded guilty in December 2022 to conspiracy charges. These included wire fraud, money laundering, and securities fraud. The offenses carried a maximum potential sentence of 110 years.
Where Others Stand in FTX Fallout
SBF's ex-girlfriend faces a different fate than other executives. Former FTX CTO Gary Wang received time-served with supervised release. Engineering director Nishad Singh avoided additional prison time entirely.
Both Wang and Singh testified against Bankman-Fried. They described creating an "allow negative" feature on Alameda's account. This feature granted access to nearly unlimited customer funds.
Ryan Salame serves a seven-year sentence at a Maryland facility. The former FTX Digital Markets CEO pleaded guilty to campaign violations. He refused cooperation with prosecutors.
Salame has criticized the disparate treatment vocally. He claims authorities offered favorable deals to cooperative witnesses. Prison records show Ellison's projected release as February 20, 2026.
During her September 2024 sentencing, Ellison expressed deep remorse. She struggled to hold back tears in court. Her statement acknowledged the widespread harm caused by her actions.
Her attorneys requested no prison time for their client. Judge Kaplan rejected what he termed a get-out-of-jail-free card. He acknowledged her unprecedented cooperation but maintained prison was warranted.
Federal prosecutors emphasized Ellison's critical testimony in their recommendation. They noted proving the crimes would have been difficult without her. She endured extraordinary public attention and harassment for cooperating.
FTX creditors continue receiving bankruptcy distributions. Recovered funds exceed $16 billion in total. Bankman-Fried remains imprisoned at a low-security California facility.
He is serving a 25-year sentence for fraud. The FTX founder continues appealing his conviction. His legal team claims prosecutorial overreach and judicial bias.
