Caroline Ellison, the former CEO of Alameda Research, has agreed to surrender the bulk of her assets to resolve a lawsuit filed by the bankruptcy estate of FTX. The case stems from FTX’s collapse in late 2022, which left creditors scrambling to recover billions in lost funds.
$28.8 Million in Assets Forfeited
As part of the settlement, Ellison will forfeit approximately $22.5 million in bonus payments she received in February 2022, as well as an additional $6.3 million that was transferred to her during 2021. Court documents revealed that, following the settlement, Ellison will have no remaining assets aside from a limited amount of physical personal property.
Ellison has also agreed to fully cooperate with the bankruptcy estate’s investigations. This cooperation could potentially assist in recovering more assets for the benefit of FTX’s creditors. Her role has now shifted from an accused to a key witness in the legal proceedings against Sam Bankman-Fried, the disgraced founder of FTX.
Bankruptcy Court Approves Reorganization Plan
In a related development, Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware has approved FTX’s reorganization plan. The plan received overwhelming support from creditors, with 94% of the “dotcom customer entitlement claims” class, representing around $6.83 billion in claims, voting in favor.
Ellison’s Prison Sentence and Testimony
In September 2023, Ellison was sentenced to two years in prison for her involvement in misusing customer funds. Her testimony has proven crucial in the case against Sam Bankman-Fried, who was sentenced to 25 years in prison earlier this year.
The settlement marks a significant step toward recovering funds for those impacted by the collapse of FTX, with Ellison’s cooperation offering further hope for creditors seeking justice.
