Core Viewpoint - Caroline Ellison, former co-CEO of Alameda Research, is set to be released early from her two-year prison sentence due to her cooperation with authorities during the FTX investigation [1][6]. Group 1: Legal Proceedings and Sentencing - Ellison was sentenced to two years in prison for her involvement in the FTX collapse, which included admitting to seven felony counts such as wire fraud and money laundering conspiracy [2][6]. - Her cooperation with prosecutors was highlighted, as she provided crucial testimony that exposed the fraudulent activities within FTX and Alameda Research [3][5]. - The judge noted her cooperation as a significant factor in her reduced sentence compared to other defendants, such as Sam Bankman-Fried, who received a nearly 25-year sentence [5][6]. Group 2: Misuse of Customer Funds - Under Ellison's leadership, Alameda Research had unrestricted access to customer deposits from FTX, which were misappropriated for various expenses, including covering losses and making high-risk investments [3][4]. - Ellison's testimony revealed that customer funds were misused while customers were led to believe their money was secure on the exchange [4][5]. - The fraudulent activities were conducted under the direction of Sam Bankman-Fried, making Ellison's evidence pivotal in the government's case against him [4][5].