Caroline Ellison has been secretly transferred to community confinement after 11 months in prison

Key points:

• Caroline Ellison transferred from prison to community confinement.
• She served about 11 months of a two-year sentence for participating in the $11 billion FTX fraud.
• Ellison cooperated with the investigation and became a key witness in the Sam Bankman-Fried case.

Former Alameda Research CEO Caroline Ellison was secretly transferred from federal prison to community confinement. Business Insider reports this, citing a representative of the US Federal Bureau of Prisons. Ellison served about 11 months of her two-year sentence.

The transfer took place on October 16. Ellison was taken from the federal correctional facility in Danbury, Connecticut, where she was serving her sentence in a low-security prison.

What community confinement means

After her transfer, Ellison formally remains under the control of federal authorities, but is no longer held in prison. She may be under house arrest or in a specialized rehabilitation facility.

The Federal Bureau of Prisons declined to disclose details of Ellison’s conditions of confinement and exact location, citing security and privacy requirements.

According to prison records, Ellison’s expected date of full release is February 20, 2026 — nearly nine months earlier than her original sentence.

FTX founder accuses Biden administration of political persecution

He links this to a change in his views and financial support from Republicans

Читать дальше

Ellison’s role in the FTX case

Caroline Ellison pleaded guilty to conspiring with Sam Bankman-Fried in a large-scale fraud case involving the collapse of FTX and Alameda Research. The investigation found that the exchange’s customer funds were used for risky trades and investments through Alameda.

Ellison became a key witness for the prosecution in the trial against Bankman-Fried in 2023. Judge Lewis Kaplan noted her “substantial” cooperation with the investigation, but emphasized that the seriousness of the crimes required real punishment.

Despite requests from the defense to avoid prison, the court sentenced Ellison to two years in prison. Sam Bankman-Fried, in turn, received a 25-year prison sentence and continues to serve his term in a federal prison in California, while appealing the verdict.