Caroline Ellison and Ryan Salame, former executives of the now-defunct cryptocurrency exchange FTX, have had their prison sentences reduced. 

The reductions are linked to their cooperation with prosecutors and good behavior in federal custody. Both Ellison and Salame pleaded guilty in 2023 to charges related to fraud and conspiracy, with their sentences handed down earlier this year in May.

Reduced sentences for good behavior and cooperation

Ellison, who had a key role as CEO of Alameda Research, was sentenced to two years in prison. She began serving her sentence at Danbury Federal Correctional Institution on November 7 and was initially scheduled for release in October 2026. However, federal records now show her release date as July 20, 2026, shortening her prison term by over three months. Ellison’s early release is primarily attributed to her cooperation as a central witness in the trial of FTX founder Sam Bankman-Fried.

Salame, sentenced to 7.5 years in prison, has also reduced his sentence. He began his term in October with an original release date set for April 2032. His new release date, as reflected in the Federal Bureau of Prisons database, is now March 1, 2031, shortening his sentence by over a year. A Bureau of Prisons spokesperson stated that reductions like these are possible under the 2018 First Step Act, which allows sentence reductions for good behavior and participation in rehabilitation programs.

The fall of FTX

FTX was once regarded as one of the most prominent cryptocurrency exchanges in the world. Its founder, Sam Bankman-Fried, was celebrated as a leading figure in the crypto industry and gained attention in political and financial circles. However, the platform collapsed in 2022 after reports surfaced that it had misused customer funds to support Alameda Research. This triggered a wave of withdrawals, leading to the company’s bankruptcy.

Caroline Ellison’s leadership at Alameda and its improper financial ties to FTX were heavily scrutinized. Along with Bankman-Fried, Salame, and Nishad Singh, Ellison was charged with fraud. Singh avoided prison time after cooperating with prosecutors, while Ellison’s and Salame’s sentences were shortened due to their assistance.

Bankman-fried’s lengthy sentence

Sam Bankman-Fried, considered the central figure behind FTX’s collapse, received a 25-year sentence for his fraud role. Unlike Ellison and Salame, he has no listed release date, according to prison records. FTX’s downfall has left lasting consequences for the cryptocurrency industry, raising questions about trust and the need for regulatory oversight.

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