Caroline Ellison Settles FTX Lawsuit, Agrees To Forfeit Majority Of Assets

Caroline Ellison, former CEO of Alameda Research, agreed to surrender most of her assets to settle a lawsuit filed by the FTX bankruptcy estate.

What Happened: Ellison has consented to a settlement that involves transferring most of her assets, not already forfeited to the government or used for legal expenses, to the FTX debtors.

Ellison has also committed to "cooperate extensively" with the FTX bankruptcy estate in ongoing and future investigations, The Block reported citing an official court filing.

FTX filed for bankruptcy in late 2022, and a lawsuit was initiated against Ellison and several other former executives to recover as many assets as possible. The litigation aimed to reclaim about $22.5 million in bonus payments transferred to Ellison in February 2022, and $6.3 million transferred to her in July and September 2021.

As per the settlement, Ellison will retain no remaining assets except certain personal property, as stated in the FTX filing. On Monday, Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware approved FTX’s reorganization plan, with about 94% of creditors voting in favor.

Also Read: Remember SBF’s ‘I Didn’t Stash Billions Away’? The Latest FTX Repayment Update May Have Other Ideas

Why It Matters: This settlement comes in the wake of Ellison’s sentencing to two years for her role in the FTX collapse, which resulted in billions of dollars in user losses. FTX founder Sam Bankman-Fried was sentenced to nearly 25 years in prison in March and ordered to repay up to $11 billion in investor and lender losses.

Yesterday, the U.S. bankruptcy judge approved FTX's plan to repay creditors up to $16.5 billion, marking the end of the exchange's two-year bankruptcy process. This marked a significant closure to one of the most notable collapses in crypto history.

What's Next: Sensible cryptocurrency regulation will be one of the central topics at the upcoming Benzinga Future of Digital Assets event on Nov. 19.

Read Next:

• FTX To Repay Creditors Up To $16.5B: Is This Bullish For Bitcoin?

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