Caroline Ellison, the former co-CEO of Alameda Research, has agreed to turn over the bulk of her assets to FTX debtors in an effort to settle a lawsuit filed against her by the FTX bankruptcy estate. In a recent filing, FTX Trading Ltd. stated that Ellison will transfer substantially all of her assets, excluding those forfeited to the government or used for legal fees, to the debtors.
Ellison has also committed to cooperate extensively with the FTX bankruptcy estate in ongoing and future investigations. FTX filed for bankruptcy in late 2022, initiating lawsuits against Sam Bankman-Fried, Ellison, and other former executives to recover as many assets as possible. The recent filing highlighted that the litigation seeks to recover approximately $22.5 million in bonus payments transferred to Ellison in February 2022, along with $6.3 million transferred in July and September 2021.
Following the settlement, FTX indicated that Ellison will retain no remaining assets aside from certain physical personal property. On the same day, Judge John Dorsey in the U.S. Bankruptcy Court for the District of Delaware approved FTX’s reorganization plan, with around 94% of creditors in favor, representing claims of about $6.83 billion.
Last month, Ellison received a two-year sentence for her involvement in the collapse of FTX, which led to users losing billions. Sam Bankman-Fried, the founder of FTX, was sentenced to nearly 25 years in prison and ordered to repay up to $11 billion in losses. Ellison has reportedly been cooperative in the investigations into FTX. In a September filing, John J. Ray III, CEO of the FTX bankruptcy estate, noted that Ellison provided valuable assistance resulting in the recovery of hundreds of millions in assets for creditors.
