Caroline Ellison's prison sentence reduced by three months

In the United States, Caroline Ellison, former CEO of Alameda Research and ex-girlfriend of FTX founder Sam Bankman-Fried, began serving a two-year prison sentence on November 7, 2023, after pleading guilty to multiple charges, including wire fraud and securities fraud, linked to the FTX collapse. Her sentencing came after she cooperated with prosecutors, providing testimony during Bankman-Fried's trial regarding their use of customer deposits for risky investments. Despite her cooperation being described as 'very substantial' by the presiding judge, she still faced a prison term due to the severity of her actions, which were part of what has been termed one of the largest financial frauds in history. Recent updates indicate that her release date has been shifted to July 20, 2026, thanks in part to good behavior under the First Step Act, a law enabling inmates to earn time off their sentences. This change reflects a calculation by the Federal Bureau of Prisons that allows inmates to reduce their time based on established criteria for good conduct. Ellison's situation is noteworthy within the context of ongoing issues surrounding justice and accountability in the financial sector, particularly concerning the high-profile collapse of the cryptocurrency exchange FTX and its broader implications for the industry.