Caroline Ellison, the former CEO of Alameda Research, will be released from a halfway home on Wednesday after spending 440 days in federal jail.
Caroline Ellison, who used to be the CEO of Alameda Research, will be released from federal prison after serving 440 days of a two-year term.
The Federal Bureau of Prisons said that Ellison will be freed from the Residential Reentry Management field office in New York City on Wednesday, more than a year after she went to jail in Danbury, Connecticut.
The ex-CEO of Alameda was one of three executives connected to the now-defunct cryptocurrency exchange FTX that went to jail. The other two were Sam “SBF” Bankman-Fried, the former CEO of FTX, and Ryan Salame, the former co-CEO of FTX Digital Markets.
Source: carolinecapital
Ellison among former FTX executives sentenced
In November 2022, the cryptocurrency exchange FTX went out of business because of claims of liquidity problems. Ellison, Bankman-Fried, Salame, and executives Gary Wang and Nishad Singh were all charged with fraud and money laundering. The Alameda CEO testified against Bankman-Fried in court and agreed to a plea deal that got her a two-year term.
Ellison was supposed to get out in February, which was still a long way from the two years she had to serve. But a lot of federal prisoners can get good behaviour credits. In October, she was presumably allowed to go to a reentry facility, where she spent her last months in custody in New York City.
Early release and re-entry program
Bankman-Fried was found guilty of seven felonies for his part in misusing FTX customer monies. He was given a 25-year prison sentence and is set to be released in 2044. Singh and Wang got time served and are still free. Salame is set to be released in 2030.
Bankman-Fried has asked the US Court of Appeals for the Second Circuit to look at his conviction and sentence again. He is waiting for the results of a hearing on November 4.
The US Securities and Exchange Commission has stopped Ellison and other former executives from taking on any leadership roles at a cryptocurrency exchange or other firm. She hasn’t said anything that makes it clear she plans to return to the crypto sector.
Ellison was banned from becoming an officer or director for ten years, while Wang and Singh were banned for eight years each.