- Caroline Ellison moved from Danbury prison to community custody in October last year.
- Her projected federal release date remains February 20, 2026, after sentence reduction.
- Ellison cooperated with prosecutors and testified against Sam Bankman-Fried in court.
Former FTX executive Caroline Ellison has moved out of a low-security federal prison in Connecticut and now sits closer to release than many expected. The transfer occurred on October 16, according to Business Insider. Ellison left the Danbury Federal Correctional Institution less than a year after reporting there in early November 2024. She still remains in federal custody, though officials now place her in community confinement.
Her projected release date remains February 20, 2026. That date comes nearly nine months earlier than the original end of her two-year sentence, based on federal prison records. The Bureau of Prisons confirmed the transfer but declined to share details. Spokesperson Randilee Giamusso spoke to Business Insider regarding Ellison’s custody status.
“For privacy, safety, and security reasons, we do not discuss the conditions of confinement for any individual,” Giamusso said. She added that the agency does not disclose specific locations during community confinement. Ellison now either lives in home confinement or a halfway house. The Bureau of Prisons has not clarified which option applies to her current placement.
Sentence Linked to FTX and Alameda Collapse
Ellison received a two-year federal sentence for her role in the collapse of Sam Bankman-Fried’s crypto empire. She previously served as CEO of Alameda Research, the hedge fund tied to FTX. She pleaded guilty to conspiring with Bankman-Fried in an $11 billion fraud scheme. The case centered on customer funds secretly moved from FTX to Alameda Research.
Prosecutors said the assets funded risky investments and covered losses. Ellison admitted to working with Bankman-Fried to execute the scheme. She entered the Danbury facility in early November 2024. Her attorneys later declined to comment on her transfer or revised custody status.
At sentencing, US District Judge Lewis Kaplan credited Ellison’s cooperation. Still, he ruled that prison time remained necessary due to the scale of the fraud. Kaplan rejected a defense request for no incarceration. He described the proposal as a “literal get-out-of-jail-free card.”
Before sentencing, Ellison addressed the court while holding back tears. She apologized for her actions and expressed regret for the harm caused. “On some level, my brain doesn’t even comprehend all the people I harmed,” Ellison said. “That doesn’t mean I don’t try.”
Related: SBF Insists “FTX Was Never Insolvent” in New Post
Cooperation and Bankman-Fried’s Ongoing Case
Ellison served as the star witness during Bankman-Fried’s 2023 criminal trial. She testified that customer funds moved through Alameda without disclosure. Her testimony supported charges that Bankman-Fried misled customers, investors, and lenders. A jury later convicted him on all seven counts of fraud and conspiracy.
Judge Kaplan sentenced Bankman-Fried to 25 years in prison. He currently remains at a low-security federal facility in San Pedro, California. Bankman-Fried continues to appeal both his conviction and sentence. His legal team argues that prosecutors unfairly previewed his testimony.
In March 2025, he appeared on The Tucker Carlson Show to discuss prison life. The interview sparked speculation about a possible presidential pardon. Some observers linked the discussion to the pardon granted to Silk Road founder Ross Ulbricht. No official sign of clemency has emerged.
As Ellison transitions into community custody, her case continues to raise questions about accountability and cooperation. How much does cooperation truly reshape outcomes in historic financial fraud cases?
