Caroline Ellison Set for Early Release After Cooperating in FTX Case

She also disclosed how their romantic relationship overlapped with their professional one, which created tension and blurred boundaries during the FTX-Alameda partnership.

Sentence Reduced After “Valuable Assistance”

While Ellison originally faced up to 115 years in prison, her cooperation significantly reduced her sentence. In fact, before her sentencing, FTX bankruptcy CEO John J. Ray told the judge she helped recover hundreds of millions in assets. Legal observers had expected her to receive supervised release rather than prison time.

Still, the two-year sentence surprised some, although it has now effectively been shortened to 14 months. Her early release likely reflects credit for good behavior and her continued support of the investigation.

She also accepted a 10-year ban on serving as an officer or director at any crypto exchange or public company.

SBF Still Seeks a Pardon

While Ellison prepares for release, Sam Bankman-Fried remains in prison. He was sentenced to 25 years and is scheduled for release in 2044. However, he is actively seeking clemency from former President Donald Trump. His legal team argues that the prosecution was politically motivated, calling the case a product of the Biden administration’s anti-crypto stance.

From Rising Star to Cautionary Tale

Ellison met Bankman-Fried in 2015 while interning at Jane Street Capital. Their professional paths crossed again in 2017, when she joined Alameda Research. At the time, she described the decision as “a blind leap into the unknown.”

Years later, that leap led to one of the most high-profile fraud cases in U.S. financial history. Now, after serving just over a year, Ellison is about to walk free, though her name remains tied to one of the crypto industry’s biggest collapses.