Bankman-Fried’s 25-year sentence reduced by more than four years through good conduct and program credits.
He was convicted for illegally commingling $11 billion in customer funds with Alameda Research.
Caroline Ellison’s two-year sentence was cut by six months; she is expected to be released by May 2026.
Sam Bankman-Fried, who was CEO of collapsed FTX, will serve less time than was originally set by the court. The Bureau of Prisons (BOP) expects he will be released on December 14, 2044, over four years before he is officially scheduled for release as noted by Crypto Crib on X. It is the result of having a good behavioral record and partaking in BOP programs, according to the rules.
https://twitter.com/Crypto_Crib_/status/1926979751828173184 Conviction and Sentencing Overview
Bankman-Fried was sentenced on seven counts of fraud and conspiracy in March 2024. The charges stemmed from his role in a scheme involving the illegal use of customer funds from FTX. Prosecutors established that he and associates commingled approximately $11 billion of client funds with Alameda Research, his hedge fund. This misuse contributed to the financial collapse of FTX.
He received a 25-year jail term for his part in the fraud. He first spent his prison time in the Metropolitan Detention Center in Brooklyn which houses several well-known inmates. While he was there, Bankman-Fried and Sean “Diddy” Combs shared a basic dorm room together. His appearance on Tucker Carlson’s show in March 2024 was reportedly the reason his crisis manager quit.
Transfer to Low-Security Facility
Eight months after his detention, Bankman-Fried moved to FCI-Terminal Island in San Pedro, California. The low-security prison has about 850 men housed there following Bureau of Prisons security ratings. According to inmate status and behavior, all jails follow a standard move process.
The BOP applies Good Conduct Time (GCT) credits to reduce sentences for qualifying inmates. Prisoners may earn 54 days off each year for good behavior. Bankman-Fried’s projected release date incorporates these credits, cutting over four years from his original sentence.
In addition to GCT, inmates can reduce their verdicts by completing approved educational, vocational, or rehabilitation programs. These activities provide further credits that contribute to early release. The BOP also counts time served prior to sentencing toward the total sentence length. Bankman-Fried’s bail was revoked two months before his trial began, resulting in additional pre-sentencing custody credit.
Caroline Ellison’s Sentence and Early Release
Caroline Ellison, former CEO of Alameda Research and Bankman-Fried’s former girlfriend, also received a prison sentence. She was convicted to two years for her role in the fraud. Similar to Bankman-Fried, Ellison earned good conduct credits and program participation reductions, cutting about six months off her original term. The BOP estimates her release for May 2026.
Ellison faced jail after Bankman-Fried’s bail was taken away after he revealed letters the journalist had written to him. This event increased the legal issues for all those involved. A change in Sam Bankman-Fried’s release date was made because he has complied with the BOP’s programs.
His lightened sentence by four years showcases the difference such polices can make in years spent in prison. Caroline Ellison will be discharged in 2026, after her reduced sentence ends. The prosecutions of the two cases are still important for cryptocurrency-related fraud cases.
