Caroline Ellison, the former CEO of Alameda Research, has been released from prison after serving 440 days. Her release follows the final SEC consent judgments against her and former FTX executives Gary Wang and Nishad Singh. The SEC's litigation, filed in 2022 and 2023, alleged a massive fraud involving diverted customer funds.

The SEC complaints detailed how Alameda received an unlimited line of credit from FTX customer assets, with Wang and Singh creating the software code for the diversion. Ellison, with knowledge of the scheme, used misappropriated funds for Alameda's trading. The fraud, which began in 2019, raised over $1.8 billion from investors through false claims about FTX's safety.

Without admitting guilt, Ellison, Wang, and Singh consented to permanent injunctions. Ellison faces a 10-year officer-and-director bar, while Wang and Singh received 8-year bans. The case, led by SEC attorneys from the Cyber and Emerging Technologies Unit, underscores the ongoing regulatory fallout from FTX's 2022 collapse.