Caroline could regain her freedom in February 2026: developments in the Alameda case

Caroline Ellison, former head of Alameda Research and romantic partner of the controversial Sam Bankman-Fried, has moved to a new stage of her sentence. Since October 16, she has been under community confinement, leaving the federal prison located in Danbury, Connecticut.

This status change means that the former executive is no longer incarcerated in the traditional sense, although she remains under federal supervision. Her current situation could include options such as house arrest or placement in a transitional home, but she remains connected to the justice system.

The Numbers of the FTX Fraud

Ellison is serving time for her involvement in the collapse of FTX, the fraudulent scheme that reached $11 billion. She has paid her dues with her time: she has been approximately 11 months in custody since being sentenced to two years in prison.

Penitentiary projections suggest that Caroline could be released earlier than initially expected. Records indicate a tentative release date of February 20, 2026, which would represent a significant reduction of her sentence.

Cooperation as a Key Factor

Her role as the main witness in the criminal trial against Sam Bankman-Fried during 2023 was decisive. The court explicitly recognized her substantial cooperation with authorities, which likely influenced the possibility of this early release. Despite this, the judicial system deemed a prison sentence necessary, albeit mitigated.

Caroline’s case reflects how the level of cooperation with justice can alter the legal consequences in large-scale financial crimes.