Caroline Ellison, the former co-CEO of Alameda Research, has reached a settlement with the FTX bankruptcy estate, agreeing to transfer most of her assets to help resolve a lawsuit stemming from FTX’s collapse.
In a recent court filing, it was revealed that Ellison will hand over nearly all her assets, excluding those already forfeited to the government or used for legal expenses. Additionally, she has committed to cooperating fully with ongoing investigations related to the bankruptcy.
FTX, which filed for bankruptcy in late 2022, is pursuing legal action against Ellison, Sam Bankman-Fried, and other former executives to recover funds lost during the company’s downfall. The lawsuit specifically targets approximately $22.5 million in bonuses Ellison received in early 2022, along with $6.3 million from earlier transfers.
Following the settlement, Ellison will retain only minimal personal property. On the same day, Judge John Dorsey approved FTX’s reorganization plan, which garnered overwhelming support from creditors, representing claims worth about $6.83 billion.
Ellison was sentenced to two years in prison for her involvement in FTX’s failure, which resulted in significant financial losses for users. Meanwhile, Bankman-Fried received a nearly 25-year sentence and was ordered to repay up to $11 billion. Throughout the legal proceedings, Ellison has been noted for her cooperation, which has reportedly aided in recovering substantial assets for creditors.
