Caroline Ellison, the former CEO of Alameda Research, has agreed to hand over most of her to settle a lawsuit filed by FTX’s bankruptcy estate.
The announcement was made in a Monday filing as part of the ongoing efforts to recover funds for creditors who were affected when the company collapsed in late 2022
As part of the settlement, Ellison is to hand over about $22.5 million in bonus payments given to Ellison in February 2022, as well as $6.3 million transferred to her in July and September 2021.
According to court documents, “Following the settlement, Ellison will have no remaining assets other than certain physical personal property,”
Additionally, Ellison has agreed to cooperate fully with the bankruptcy estate in ongoing and future investigations, which could help recover more money for creditors.
The goal is to recover as many assets as possible. On Monday, Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware approved FTX’s reorganization plan. According to the filing, about 94% of creditors in the “dotcom customer entitlement claims” class, representing around $6.83 billion in claims, voted in favor of this plan.
On Sept. 25, Ellison received a two-year sentence in prison for her role in misusing customer funds. However, she now plays a key witness in the case against Sam Bankman-Fried, the founder of FTX, who was also sentenced to 25 years in prison in March.
