Caroline Ellison, the former co-CEO of Alameda Research and involved in the FTX collapse, has been released from federal custody after serving approximately 14 months of her two-year prison sentence. She is scheduled to leave a 'residential reentry management' facility in New York, commonly known as a halfway house, where she had been in community confinement since October 2025. Ellison was transferred from a Connecticut prison in October after beginning her sentence in November 2024. She pleaded guilty in December 2022 to multiple charges related to conspiracy and fraud involving FTX and Alameda Research, which had close ties to the now-defunct crypto exchange FTX. Ellison cooperated with authorities and testified against FTX founder Sam Bankman-Fried during his criminal trial, where he was sentenced to nearly 25 years in prison for charges including wire fraud and money laundering. Ellison's early release follows her cooperation and remorse, though her attorneys declined to comment. She was also the star witness in Bankman-Fried's trial, and her release marks a significant development in the ongoing fallout from the FTX scandal.