Bankman-Fried, Ellison Get Early Release; FTX Repays

Sam Bankman-Fried, founder of the collapsed crypto exchange FTX, was sentenced to 25 years in prison in March 2024 for orchestrating an $11 billion fraud scheme involving customer funds through Alameda Research. Due to federal policies on good conduct, program participation, and time served, his projected release is now December 14, 2044—over four years early. Former Alameda CEO Caroline Ellison, who received a two-year sentence as a key witness, is also expected to be released about six months early. The FTX estate, now led by new management, is attempting to recover and distribute more than $5 billion to creditors affected by the collapse. These sentence reductions are standard under federal guidelines allowing up to 54 days off per year for good behavior. The FTX collapse and subsequent prosecutions continue to affect the wider cryptocurrency industry.