Caroline Ellison, former CEO of Alameda Research and a key cooperating witness in the FTX fraud case, was transferred from federal prison to community confinement on October 16, 2025.
This move occurred after she served approximately 11 months of her original two-year sentence at the low-security Federal Correctional Institution in Danbury, Connecticut.
Community confinement typically involves either home confinement or placement in a halfway house, while remaining under Federal Bureau of Prisons supervision. Her projected full release date is now February 20, 2026—about nine months earlier than the end of her original sentence.
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The Bureau of Prisons has not disclosed the exact location or specific conditions, citing privacy, safety, and security reasons. This transfer is described as routine, potentially based on factors like good behavior, sentence length, and eligibility for reentry programs.
Ellison pleaded guilty to multiple fraud and conspiracy charges related to the misuse of FTX customer funds and testified against Sam Bankman-Fried. The news of her transfer surfaced publicly in mid-December 2025, sparking discussions about sentencing disparities in the FTX case.
Hyperliquid’s HYPE Token Falls Below $25
The native token of the Hyperliquid decentralized perpetuals exchange, HYPE, has recently dipped below $25 for the first time since May 2025.
HYPE is trading around $24.46 USD, reflecting ongoing bearish pressure amid broader market volatility, token unlocks, and liquidations. This breach of the $25 support level has triggered significant events, including a major whale facing over $19.6 million in unrealized losses on a 5x leveraged long position with liquidation risk at ~$20.65.
Down ~10% in the past week, with analysts noting oversold RSI indicators but warning of potential further declines toward $20–$22 if support fails. HYPE had rallied strongly earlier in 2025— ATH around $58–$59 in September, driven by platform growth, but faced sell pressure from unlocks and competition in the DeFi perp space.
Ellison’s extensive testimony against Sam Bankman-Fried (SBF) was praised by the judge as exceptional, contributing to sentence reductions and early reentry eligibility. Good behavior and short sentence: Short federal sentences often qualify for early transfer to less restrictive settings for reintegration.
Highlights perceived leniency for white-collar crypto fraud cooperators vs. SBF’s 25-year term, potentially fueling discussions on justice disparities in high-profile cases. The news emerged quietly in mid-December 2025 with minimal backlash or viral outrage on social platforms; mostly factual reporting.
Reinforces incentives for cooperation in large fraud prosecutions, but underscores ongoing scrutiny of FTX-related sentencing. This appears standard rather than controversial, with location kept private for safety.
Implications of HYPE Falling Below $25
Oversold RSI ~28, bearish MACD crossover, declining open interest, and negative social dominance signal continued downside risk. Analysts warn of potential drops to $20–$22 or lower if $24 support fails.
High-leverage perps trading on Hyperliquid amplified sell-offs; recent token unlocks ~1.75M HYPE added supply pressure, triggering ~9–15% weekly declines. Some large positions face unrealized losses > $19M on leveraged longs, with liquidation risks near $20.65.
Hyperliquid’s DEX/perps volume hit records ~$419B monthly, with ongoing upgrades like HyperEVM expansion, permissionless markets. A proposed $1B token burn could reduce circulating supply, adding deflationary pressure. Pending ETF filings could drive institutional inflows if approved. Buyback mechanisms support value accrual.
Ranked #13–25 by market cap around $8.2B, HYPE’s performance is tied to broader crypto sentiment and DeFi perp competition. Oversold conditions suggest possible rebound if BTC stabilizes, but further macro weakness could push toward $20 or below.
Both reflect ongoing crypto ecosystem dynamics: regulatory fallout from past scandals and volatility in high-growth DeFi projects.