Caroline Ellison’s Early Release from Federal Prison

Caroline Ellison, once known as the right-hand figure of FTX’s Sam Bankman-Fried, is set to be released early from federal prison after serving only 15 months of her two-year sentence.

At 31, Ellison faced a relatively light sentence after admitting to fraud charges tied to the expansive multibillion-dollar cryptocurrency scandal. Her cooperation in testifying against Bankman-Fried, who received a 25-year prison term in March 2024, likely played a part in her lenient treatment.

Records from the U.S. Bureau of Prisons indicate her release is planned for January 21.

Ellison was previously the head of Alameda Research, the hedge fund employed by Bankman-Fried and other executives to make speculative cryptocurrency investments. When those investments failed, Bankman-Fried reportedly misappropriated $8 billion from FTX customers to support Alameda.

Funds from the hedge fund were also allegedly used to make illegal political contributions and support an extravagant lifestyle, including wild “polycule” parties in luxurious settings.

During her incarceration, she intriguingly wrote a romantic novel set in early 20th century England. This detail came from a letter penned by her mother, Sarah Fisher Ellison, an economics lecturer at MIT.

The narrative of the novel is said to be “loosely based” on her sister Kate’s fictional romantic endeavors.

During her trial, Ellison expressed feelings of “deep shame” to Judge Lewis Kaplan. The judge recognized the significance of her cooperation, stating, “You bear a considerable responsibility for this fraud, but you have demonstrated remarkable cooperation. That distinguishes you from Mr. Bankman-Fried.”

Ellison received her two-year sentence in September 2024, but just two months later, her release was advanced by three months to July 20, 2026. Current federal records suggest that her release may now come even sooner.