- Caroline Ellison, former CEO of Alameda Research, agrees to transfer nearly all her assets to FTX creditors as part of a bankruptcy settlement
- Ellison will also cooperate fully with investigations into the FTX collapse, aiding efforts to recover assets for creditors
- The settlement includes Ellison forfeiting millions in bonuses and personal funds received during her tenure
Former Alameda Research Chief Executive Caroline Ellison will turn most of her assets over to FTX creditors as part of her deal with the bankrupt exchange’s estate.
Ellison’s Asset Forfeiture Marks Key Step in FTX Bankruptcy Case
Details of the deal to recover assets for creditors affected by the collapse of FTX—up until November 2022 the world’s largest cryptocurrency exchange—were laid out in a court filing Monday.
A filing by FTX Trading Ltd. stated that Ellison would “transfer substantially all of her assets to the FTX creditors.” This includes assets the government has not seized, as well as those reserved for her legal defense expenses.
Ellison will cooperate in the FTX investigations. As part of the settlement, she agreed to fully cooperate with FTX’s bankruptcy estate in all ongoing and future investigations related to the case.
The implosion of FTX in late 2022 set off a frenzied effort to recover assets from former executives, including Ellison and FTX founder Sam Bankman-Fried.
The ongoing litigation seeks to recover about $22.5 million in bonuses paid to Ellison in February 2022 and another $6.3 million transferred to her in July and September 2021.
So, the terms of the settlement state that after transferring her assets, Ellison will retain only her personal effects.
Conclusion
This is a significant step toward recovering the lost assets since FTX’s collapse. With Ellison’s full cooperation and the transfer of most of her assets, this marks a key stage in the proceedings as FTX continues seeking justice for the affected creditors.
