A Short Prison Stay for Caroline Ellison

Caroline Ellison, the former head of Alameda Research, is set to walk free from prison much earlier than expected. She was only sentenced to two years for her part in the FTX crypto scandal, and now, after just 15 months, she's getting out early. This is quite a contrast to her ex, Sam Bankman-Fried, who got a 25-year sentence for the same mess. Ellison, who is 31, admitted her role in the fraud and agreed to testify against Bankman-Fried. This cooperation likely helped her get a lighter sentence. She was supposed to be released in July 2026, but now it's been moved up to January 21, 2026. So, what exactly did Ellison do? She was in charge of Alameda Research, a hedge fund that took huge risks with crypto. When those bets didn't pay off, Bankman-Fried used $8 billion from FTX customers to keep Alameda going. That money also funded illegal campaign contributions and a wild lifestyle, including fancy parties.While in prison, Ellison wrote a romance novella set in early 20th-century England. Her mom, an MIT economics lecturer, shared this with the judge. The story is loosely based on her sister's love life. At her sentencing, Ellison said she was deeply ashamed of her actions. The judge noted that her cooperation was key in putting Bankman-Fried away. He acknowledged that while she was involved in the fraud, her help set her apart from Bankman-Fried. Ellison's early release is a reminder of how cooperation can impact sentencing. It also shows the stark difference between her punishment and Bankman-Fried's. While she gets out early, he faces decades behind bars.