Former Alameda Research chief executive Caroline Ellison is set to be released from federal custody weeks earlier than originally scheduled.
US federal authorities updated Ellison’s release date to Jan. 21, according to records from the Federal Bureau of Prisons.
Ellison was sentenced to two years in prison for her role in the misuse of customer funds tied to the collapse of cryptocurrency exchange FTX.
The former executive had initially been expected to remain in custody until Feb. 20.
Ellison was transferred out of prison in October and moved to a Residential Reentry Management field office in New York City.
Authorities did not publicly disclose the reason for the shortened timeline.
Federal inmates are often eligible for good-conduct credits and reentry programmes that can reduce time in custody.
Ellison rose to prominence after joining Alameda Research as co-chief executive before becoming sole CEO.
She worked closely with Sam “SBF” Bankman-Fried across multiple crypto ventures.
Ellison and Bankman-Fried were also romantically involved for a period prior to the collapse of FTX.
FTX filed for bankruptcy in November 2022 after a liquidity crisis exposed widespread misuse of client funds.
Ellison was indicted on charges including fraud and money laundering following the exchange’s failure.
She later agreed to cooperate with US prosecutors as part of a plea deal.
Ellison testified against Bankman-Fried during his criminal trial.
Former FTX executives Gary Wang and Nishad Singh also cooperated with authorities.
Wang and Singh accepted plea agreements and were ultimately sentenced to time served.
Bankman-Fried was convicted on multiple counts of fraud and conspiracy.
He was sentenced to 25 years in prison and remains in custody.
Bankman-Fried is currently pursuing an appeal against both his conviction and sentence.
Without legal intervention, he is expected to be released in September 2044.
Ryan Salame, co-chief executive of FTX Digital Markets, also pleaded guilty in connection with the case.
Salame did not testify at Bankman-Fried’s trial.
He was sentenced to seven-and-a-half years in prison in 2024.
Salame is currently scheduled for release in 2030.
While Ellison’s release from custody is imminent, regulatory restrictions will continue to limit her professional activities.
The US Securities and Exchange Commission confirmed Ellison consented to a long-term leadership ban.
Under the agreement, Ellison is barred for 10 years from serving as an officer or director.
The restriction applies to cryptocurrency exchanges and other businesses.
Regulators said the ban is intended to protect investors and maintain market integrity.
Ellison’s case remains one of the most high-profile outcomes from the FTX collapse.
The episode continues to shape enforcement priorities across the US crypto sector.