Alameda Research former CEO Caroline Ellison transferred from federal prison… poised for early release

Caroline Ellison, the former chief executive of Alameda Research who pleaded guilty and is serving time in connection with the FTX collapse, has been transferred from a federal prison. With about two months remaining until her scheduled release, it has become increasingly likely she will spend the end of the year outside prison.

According to records from the U.S. Federal Bureau of Prisons (BOP) on the 17th (local time), Ellison was moved from the federal correctional institution (FCI Danbury) in Danbury, Connecticut, to a facility under the New York City Residential Reentry Management. This is the first confirmed change of residence since her incarceration in November 2024.

Ellison was indicted on charges including fraud for her role in the FTX collapse and was sentenced to 2 years in prison. This sentence is relatively light compared with FTX founder and CEO Sam Bankman-Fried, who was sentenced to 25 years. According to the BOP, Ellison's official release date is February 20, 2026, which is about nine months earlier than the end of her full term.

Ellison was charged alongside Bankman-Fried after the November 2022 collapse of FTX, later pleaded guilty, and cooperated with prosecutors, testifying during trials. By contrast, another key figure, former co-CEO of FTX Digital Markets Ryan Salame, pleaded guilty but did not testify and was sentenced to 7 years and 6 months.

Ellison met Bankman-Fried while working at Jane Street and joined Alameda Research in 2017. She later served as co-CEO and was named sole CEO in August 2022. After the FTX collapse she kept a low public profile but appeared as a witness in Bankman-Fried's trial in October 2023, testifying that the structure that funneled $14 billion of FTX customer funds into Alameda was designed by Bankman-Fried.

In a September 2024 sentencing memorandum, prosecutors noted that Ellison had been exposed to excessive public criticism and online mockery after the case. With Ellison's release approaching, interest in figures related to the FTX collapse is expected to rise again. The Netflix series covering the stories of Sam Bankman-Fried and Ellison, "The Altruists," is also scheduled for release.