Caroline Ellison Transferred From Federal Prison to Community Confinement

• Caroline Ellison was transferred to community confinement after serving about 11 months of her two-year sentence.
• Federal records show Ellison’s projected release date is February 20, 2026, nearly nine months early.
• Ellison cooperated with prosecutors and testified against Sam Bankman-Fried in the FTX fraud trial.

Caroline Ellison, a former cryptocurrency executive tied to the collapse of FTX, has been transferred from federal prison to community confinement after serving roughly half of her sentence, according to information confirmed by the U.S. Bureau of Prisons and reviewed by Business Insider. The move occurred quietly in mid-October, months before her projected release date.

Ellison, 31, previously served as chief executive officer of Alameda Research, the cryptocurrency hedge fund founded by Sam Bankman-Fried. She reported to Danbury Federal Correctional Institution, a low-security prison in Connecticut, in early November 2024 to begin serving a two-year sentence related to her role in an $11 billion fraud scheme connected to FTX.

Transfer Occurred in October

A Bureau of Prisons spokesperson confirmed that Ellison was transferred on October 16 from Danbury to community confinement. While still under federal custody, this designation means she is now either placed in home confinement or housed in a halfway facility. Officials declined to disclose specific details regarding her location or the conditions of her confinement, citing privacy and security policies.

Federal prison records indicate Ellison’s projected release date is February 20, 2026, which is nearly nine months earlier than the original completion of her sentence. Her legal representatives declined to comment on the transfer or the revised release timeline.

Role in the FTX Fraud Case

Ellison pleaded guilty to conspiracy charges tied to the misuse of customer funds at FTX, the cryptocurrency exchange founded by Bankman-Fried. Prosecutors stated that customer assets were secretly transferred to Alameda Research, where they were used for trading, investments, and other expenditures without user consent.

During Bankman-Fried’s 2023 criminal trial, Ellison served as a central witness for the prosecution. She testified that she and Bankman-Fried directed the movement of billions of dollars in customer funds from FTX to Alameda, providing detailed accounts of how the scheme was executed.

Sentencing and Cooperation

At her sentencing hearing, U.S. District Judge Lewis Kaplan acknowledged Ellison’s extensive cooperation with authorities, describing it as “substantial.” However, the judge ruled that the seriousness of the offenses warranted incarceration despite her assistance. A request from Ellison’s legal team for a sentence without prison time was rejected.

Before sentencing, Ellison addressed the court and expressed remorse for her actions, stating that she regretted the harm caused by the scheme.

Bankman-Fried was convicted on all seven counts of fraud and conspiracy and sentenced to 25 years in federal prison. He remains incarcerated at a low-security facility in San Pedro, California, while pursuing an appeal of his conviction and sentence.