Caroline Ellison, a former executive in the cryptocurrency industry and the ex-girlfriend of Sam Bankman-Fried, has been moved from federal lockup after completing approximately 11 months of her two-year prison sentence. On October 16, Ellison was transferred from the Danbury Federal Correctional Institution in Connecticut to community confinement, as confirmed by a spokesperson from the Federal Bureau of Prisons.
This transition means that Ellison, who previously served as the CEO of Bankman-Fried’s Alameda Research cryptocurrency hedge fund, continues to be under federal custody but is now either residing in home confinement or a halfway house. The Bureau of Prisons has chosen to keep specific details about her confinement circumstances private for reasons pertaining to safety and security.
Ellison’s projected release date is logged as February 20, 2026, which is nearly nine months ahead of her original schedule. Her legal team has opted not to comment on this news.
Arriving at the low-security Danbury prison in early November 2024, Ellison was sentenced to two years due to her involvement in a massive multibillion-dollar fraud scheme that contributed to the downfall of Bankman-Fried’s extensive business operations. She entered a guilty plea, admitting to conspiring with Bankman-Fried—the founder of the FTX cryptocurrency exchange and Alameda Research—in an $11 billion fraud scheme.
In a significant turn during Bankman-Fried’s criminal trial in 2023, Ellison served as a key witness. She detailed how she and Bankman-Fried utilized Alameda Research to invest billions of dollars obtained through fraudulent means from FTX customers. During her sentencing, U.S. District Judge Lewis Kaplan noted Ellison’s “substantial” cooperation with the prosecution, while also emphasizing the gravity of the fraud case that warranted a prison term. Although her attorneys argued for alternative punitive measures, the judge dismissed their request, referring to it as a “literal get-out-of-jail-free card.”
Prior to her sentencing, Ellison expressed remorse and apologized for her actions, stating, “On some level, my brain doesn’t even comprehend all the people I harmed. That doesn’t mean I don’t try.”
In contrast, Bankman-Fried was sentenced to 25 years in prison after a jury convicted him on multiple counts of fraud and conspiracy. He is currently serving his time in a low-security federal facility in San Pedro, California, as he pursues an appeal against his conviction and sentencing. His legal representatives are advocating for a new trial, contending that prosecutors unfairly previewed his testimony during the proceedings.
