Caroline Ellison has commenced her two-year sentence at a halfway house after pleading guilty to wire fraud and conspiracy charges related to the FTX case. Her cooperation with prosecutors resulted in a reduced sentence, with her release anticipated on February 20, 2026. The halfway house imposes strict rules designed to facilitate her reintegration into society. Ellison's case has become a focal point in discussions about liquidity and oversight in crypto markets. Concurrently, regulatory bodies are increasingly associating enforcement actions with efforts to counter the financing of terrorism, highlighting the broader implications of her case on regulatory practices.