FTX Insider Caroline Ellison Gets Released

Caroline Ellison, the former co-CEO of Alameda Research and a central figure in the collapse of FTX, was released on January 21 after serving nearly a year in prison.

According to the U.S. Federal Bureau of Prisons, Ellison is set to leave a residential reentry management facility in New York, commonly known as a halfway house. These facilities help inmates prepare for life after prison by assisting with employment, housing, and social and financial reintegration.

Ellison, 31, remained in community confinement since October 2025 after the authorities transferred her from a federal prison in Connecticut, where she began serving her two-year sentence in November 2024.

From Crypto Power Broker to Federal Inmate

Ellison led Alameda Research, the quantitative trading firm that the authorities later revealed worked deeply with cryptocurrency exchange FTX, far beyond what investors and customers originally believed.

Alameda and FTX were both founded by Sam Bankman-Fried, Ellison’s former romantic partner and the former CEO of FTX.

In November 2022, FTX collapsed after a sudden liquidity crisis triggered mass withdrawals and exposed what prosecutors later described as widespread fraud and misuse of customer funds. The bankruptcy instantly wiped out billions in customer assets and sent shockwaves across the crypto industry.

Ellison pleaded guilty in December 2022 to a sweeping list of charges, including two counts of conspiracy to commit wire fraud, two counts of wire fraud, one count each of conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering.

Her cooperation with federal prosecutors later became a key component of the government’s case against Bankman-Fried.

The authorities transferred Ellison to community confinement in October 2025, marking the final phase of her sentence. Her release from the halfway house effectively concludes her prison term.

Her status on the Bureau of Prisons website currently lists her as no longer in BOP custody as of January 21, 2026.

*Caroline Ellison’s inmate record. Source:* *Federal Bureau of Prisons*

Crypto Industry Reacts: “Some Hypotheticals Best Left Untouched”

News of Ellison’s release quickly spread across crypto social media, triggering a wave of reactions, including a viral LinkedIn post from crypto and blockchain industry recruiter Michael Shlayen. As he wrote:

“Look who’s back on the job market in a couple of days. Fresh out of prison.”

He joked about whether Ellison might consider returning to crypto, even inviting her to browse open roles on his recruiting platform, before admitting that at least one client had already passed on the idea.

“I actually just asked a real client whether they’d be interested. They said they’d give her a miss. Strange. Can’t imagine why.”

Despite the humor, the post highlighted a serious reality: Ellison’s name remains permanently linked to one of the largest financial scandals in crypto history.

What Comes Next for Caroline Ellison?

Ellison’s release marks the end of a dramatic chapter in crypto’s most infamous collapse, but her future remains uncertain. Though she played a key role in exposing the inner workings of FTX and Alameda, her reputation remains deeply damaged.

Time will tell whether she attempts to re-enter the crypto industry, finance, or pursue an entirely different path. One thing is certain: the FTX saga continues to cast a long shadow over the digital asset industry.