Caroline Ellison, the former CEO of Alameda Research, has been released from federal custody after serving 440 days of a two-year sentence. According to inmate records from the Federal Bureau of Prisons, Ellison was released from the Residential Reentry Management field office in New York City on January 21, 2026. Her release concludes a significant chapter in the legal fallout from the collapse of the FTX cryptocurrency exchange in November 2022.
Ellison was one of several executives indicted on charges of fraud and money laundering following FTX's implosion, which revealed an estimated $8 billion shortfall in customer funds. Her cooperation with prosecutors, including testifying against FTX founder Sam "SBF" Bankman-Fried, led to a plea deal and a reduced sentence. She was initially scheduled for release in February 2026 but was granted an early release, a common federal practice for cooperative defendants with good conduct.
The legal proceedings for other key FTX figures continue. Sam Bankman-Fried was convicted on seven felony counts and sentenced to 25 years in prison, with a scheduled release in 2044; he is currently appealing the decision. Former FTX Digital Markets co-CEO Ryan Salame is scheduled for release in 2030, while co-founder Gary Wang and former engineering director Nishad Singh received sentences of time served and remain free.
As part of a consent judgment with the U.S. Securities and Exchange Commission (SEC), Ellison, Wang, and Singh are barred from holding leadership roles in the cryptocurrency industry. Ellison received a 10-year officer-and-director ban, while Wang and Singh each received eight-year bans. There is no indication Ellison plans to resume any position in crypto.
The FTX case has had profound ripple effects, accelerating global regulatory scrutiny and prompting calls for stricter digital asset custody rules, such as the European Union's MiCA framework. The bankruptcy process for FTX continues, with thousands of creditors still awaiting full repayment.
