Caroline Ellison, the former CEO of the defunct venture capital firm Alameda Research and key witness in the FTX fraud trial, has reportedly transitioned out of the Danbury Federal Correctional Institution in Connecticut after serving 11 months of her two-year sentence. According to Federal Bureau of Prisons (BOP) records, Ellison was transferred on Oct. 16 to “community confinement,” a custodial arrangement where she will serve the remainder of her term in a halfway house or under home confinement.

BOP spokesperson Randilee Giamusso confirmed the transfer but declined to specify Ellison’s exact location or the specific conditions of her arrangement.

“For privacy, safety, and security reasons, we do not discuss the conditions of confinement for any individual, including reasons for transfers or release plans, nor do we specify an individual’s specific location while in community confinement,” Giamusso stated.

Despite her central role in the multibillion-dollar fraud scheme orchestrated by Sam Bankman-Fried (SBF), Ellison received a significantly lighter sentence of 24 months due to her “exemplary” cooperation with prosecutors. As the star witness, her testimony provided the cornerstone for SBF’s conviction. While U.S. District Judge Lewis Kaplan praised her transparency, he ultimately rejected her plea for a non-custodial sentence, citing the massive scale of the crime.

Ellison’s projected final release date is now Feb. 20, 2026, approximately nine months earlier than initially expected.

The news of Ellison’s transfer comes as Sam Bankman-Fried continues to push for an appeal of his 25-year sentence. SBF’s legal team, which presented oral arguments before the Second Circuit in November 2025, alleges “prosecutorial overreach,” media bias, and misconduct by Judge Kaplan. Supporters of the former FTX founder are likely to point to Ellison’s early transition to community confinement as further evidence of what they perceive as a “lopsided” judicial process.

Read more: SBF to Appeal Conviction, Claims Trial Tainted by Judge Kaplan’s Bias

Separately, Bankman-Fried maintains that FTX was never truly insolvent. He continues to blame outside counsel for “strong-arming” the exchange into an unnecessary bankruptcy filing, a narrative that has reportedly been met with skepticism by appellate judges and bankruptcy officials alike.

• Where is Caroline Ellison now? She has been moved from Danbury FCI in Connecticut to community confinement, likely a halfway house or home confinement.
• Why was Ellison transferred early? Her shift to community confinement aligns with BOP policy and reflects her cooperation in the FTX case.
• How does this affect Sam Bankman‑Fried’s appeal? SBF’s supporters argue Ellison’s early transition highlights what they view as an uneven judicial process as he challenges his 25‑year sentence.
• When is Ellison expected to be fully released? Her projected final release date is Feb. 20, 2026, roughly nine months earlier than first anticipated.

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