Caroline Ellison Nears Freedom After Plea Deal Cooperation

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Ellison’s Release Timeline

BoP records indicate that Ellison will be completely released from federal supervision on January 21, 2026. According to a report, Ellison was transitioned to community supervision from the federal prison in Connecticut in October 2025, continuing the final phase of her sentence in a less restrictive environment. Her two-year prison sentence originally commenced in November 2024, and her planned January 2026 release suggests an early end of about 10 months compared to the nominal term.

The early release might be linked to “good conduct” type credits. Ellison’s cooperation in the FTX investigation and assistance to the prosecution are cited as favorable factors contributing to her penal process. Additionally, following her release, Ellison will remain under probationary conditions.

Ellison’s legal restrictions extend beyond incarceration. Earlier this month, she accepted a 10-year ban preventing her from serving as an executive or board member in public companies or cryptocurrency exchanges. This ban significantly reduces her chances of returning to corporate roles in the future.

Behind the FTX Collapse: Developments on the SBF Front

Ellison faced fraud and conspiracy charges during the events leading to the FTX exchange’s collapse in 2022 and admitted guilt in December 2022. In the process, she collaborated with prosecutors and testified in the trial of FTX founder Sam Bankman-Fried, who was later found guilty and sentenced to 25 years in prison. Ellison’s sentence was issued by U.S. District Judge Lewis Kaplan in September 2024, with the court declaring an $11 billion forfeiture order.

John J. Ray III, the CEO of FTX’s bankruptcy estate, noted in a court filing in September that Ellison provided “valuable assistance and cooperation” to debtor companies, contributing to the recovery of assets worth hundreds of millions of dollars for creditors’ benefit. Her cooperative approach in the investigation is believed to have positively impacted her sentencing.

On the Sam Bankman-Fried front, a different path is being taken. Bankman-Fried has been actively seeking clemency from U.S. President Donald Trump. Reports state Trump has pardoned individuals like former Binance CEO Changpeng Zhao. Bankman-Fried, who continues to appeal his conviction, claims his detention is a political retaliation by the “anti-crypto” Biden administration. According to the BoP website, Bankman-Fried’s release date is seen as September 2044.