Caroline Ellison, the previous chief govt of Alameda Analysis and a central determine within the downfall of Sam Bankman-Fried’s crypto empire, has been quietly moved out of a federal jail facility after serving roughly 11 months of a two-year sentence.
The 31-year-old was transferred on October 16 from the low-security Federal Correctional Establishment in Danbury, Connecticut, to neighborhood confinement.
From Star Witness to Dwelling Confinement
In accordance with Enterprise Insider, the newest standing retains her beneath federal custody however permits her to serve the rest of her sentence both at residence or in a midway home. The US Bureau of Prisons confirmed the switch however declined to share particulars about her precise location or the phrases of her confinement, citing privateness and safety issues.
Jail information reveal Ellison is anticipated to be launched on February 20, 2026, almost 9 months sooner than her authentic sentence, although officers didn’t clarify why.
Ellison reported to Danbury in early November 2024 after being sentenced for her function within the multibillion-dollar fraud that collapsed FTX and its sister buying and selling agency, Alameda Analysis. She pleaded responsible to conspiring with Bankman-Fried in what prosecutors described as an $11 billion scheme that concerned secretly utilizing buyer funds from FTX to cowl losses and dangerous bets at Alameda.
Ellison’s testimony on the 2023 trial supplied a few of the most startling revelations. The previous Alameda Analysis CEO advised jurors that Bankman-Fried directed her to misinform traders and aggressively borrow funds, which left Alameda with roughly $10 billion in loans by mid-2022. Ellison additionally described excessive measures mentioned to get well frozen Chinese language funds, together with negotiations, utilizing third-party crypto wallets, and an alleged $100 million bribe. She additional revealed makes an attempt to lift cash from Saudi Arabia, misuse of FTX buyer funds, and the creation of a number of doctored stability sheets to cover Alameda’s insolvency.
Her cooperation performed a significant function in securing Bankman-Fried’s conviction, a reality acknowledged by US District Choose Lewis Kaplan at her sentencing. Whereas praising Ellison’s help as “substantial,” Kaplan mentioned the size and seriousness of the misconduct made a jail sentence unavoidable, and rejected her legal professionals’ request for no jail time.
SBF’s Jail Rants
In the meantime, Bankman-Fried is serving a 25-year jail sentence after a jury convicted him on all seven counts of fraud and conspiracy. He’s presently held at a low-security federal jail in San Pedro, California, whereas he appeals each his conviction and the size of his sentence.
Not like Ellison, who has saved a low profile, Bankman-Fried has continued to make public claims in regards to the case. In current months, he accused FTX’s court-appointed CEO, John J. Ray III, of deliberately protecting the alternate in chapter regardless of what he described as a “completely solvent” enterprise.
He has additionally circulated prolonged statements insisting FTX by no means collapsed on account of fraud, blaming legal professionals, regulators, and political forces for what he calls a mishandled liquidity disaster. Extra not too long ago, Bankman-Fried has advised his arrest was politically pushed, whereas pointing to his shift towards centrist views and donations to Republican causes.
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