Former FTX and Alameda Research executive Caroline Ellison was quietly transferred out of the low-security Danbury Federal Correctional Institution in Connecticut on October 16, placing her much closer to early release than many anticipated when she began serving her sentence last year.

According to official records, her expected release date remains February 20, 2026, which is roughly nine months earlier than the end of her original sentence.

Transition to community confinement: a less restrictive phase

The Federal Bureau of Prisons (BOP) confirmed that Ellison is now completing the remainder of her sentence under community confinement, which typically includes either home detention or placement in a residential reentry center.

BOP spokesperson Randilee Giamusso stated:

“Community confinement may involve home confinement or a residential reentry center. For safety, privacy, and security reasons, we do not provide details about an individual’s transfer, confinement conditions, or specific location.”

Two-year sentence for her role in a multibillion-dollar scheme

Ellison reported to the Danbury facility in early November 2024 to begin serving a two-year prison term tied to one of the largest financial frauds in crypto history.

She had pleaded guilty to participating with Sam Bankman-Fried in an $11 billion scheme, involving the secret diversion of customer funds from the FTX exchange to Alameda Research.

During SBF’s 2023 criminal trial, she became a key witness for prosecutors, testifying that Alameda used billions in misappropriated FTX customer deposits for trading, loans, and other purposes without disclosure.

Her legal team urged the court to avoid any incarceration, but Judge Lewis Kaplan rejected the request and stressed he would not grant a “get-out-of-jail-free card.”

Before sentencing, Caroline addressed the court tearfully and apologized, saying:

“On some level, my brain doesn’t fully grasp the number of people I harmed. That doesn’t mean I don’t try to understand.”

SBF faces a much longer road

While Caroline moves toward release, Sam Bankman-Fried continues serving a 25-year federal sentence after being convicted on all seven counts of fraud and conspiracy.

He is currently held at a low-security federal prison in San Pedro, California.

SBF is appealing both his conviction and his sentence, with his lawyers arguing he deserves a new trial because prosecutors allegedly misrepresented aspects of his expected testimony.

#FTX , #SBF , #CarolineEllison , #CryptoFraud , #CryptoScandal

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“