Caroline Ellison, former CEO of Alameda Research and ex-girlfriend of FTX founder Sam Bankman-Fried, is scheduled to be released from U.S. federal custody on Wednesday after serving 440 days of a two-year sentence.
Ellison’s Release
According to Bureau of Prisons records, Ellison will be released from a residential re-entry facility in New York City after receiving credit for good conduct and transitioning to re-entry custody in October.
Ellison was among several former FTX and Alameda executives charged following the collapse of FTX in 2022, CoinTelegraph reported on Wednesday.
She testified against Bankman-Fried as part of a plea agreement, providing insider testimony on the fraud that contributed to an estimated $8 billion shortfall in customer funds.
Ellison and other convicted executives are permanently barred from holding leadership roles in crypto-related businesses.
Bankman-Fried is currently serving a 25-year prison sentence and is appealing his conviction, while other former executives received significantly lighter sentences.
FTX Fallout And Regulatory Impact
While Ellison’s release marks the end of her custodial sentence, the broader fallout from FTX continues through bankruptcy proceedings, ongoing legal appeals, and heightened regulatory scrutiny of the crypto industry.
The collapse of FTX has accelerated regulatory efforts globally.
In the United States, lawmakers have pushed for clearer oversight boundaries between the SEC and CFTC, while in Europe, the Markets in Crypto-Assets (MiCA) framework gained momentum in part due to the scandal.
The case remains a defining example of the risks posed by weak governance, limited transparency, and insufficient oversight in digital asset markets.
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