Key Takeaways:
- Former Alameda Research CEO Caroline Ellison has agreed to a settlement with FTX, forfeiting nearly all her remaining assets, except personal belongings.
- Ellison will cooperate with FTX’s ongoing legal proceedings, providing information from her time as CEO, in exchange for avoiding further litigation.
- A court hearing for the settlement is set for Nov. 20, while FTX’s bankruptcy plan has been approved, allowing customers to recover up to 142% of their claims.
Caroline Ellison, former CEO of Alameda Research, has agreed to a settlement with FTX, requiring her to forfeit nearly all her remaining assets.
A motion filed on October 7 seeks court approval for the settlement, which would leave Ellison with no assets except personal belongings.
In return, she will cooperate with ongoing investigations and legal proceedings related to FTX’s bankruptcy.
This cooperation may include sharing crucial information from her time leading Alameda Research.
FTX argues that Ellison’s cooperation and asset forfeiture provide more value than pursuing further litigation, which could drain her resources.
Ellison had previously been sued by FTX in July 2023 for breaching fiduciary duties and making fraudulent transfers, with FTX seeking millions in bonuses and equity.
A hearing on the settlement is set for November 20.
Ellison’s cooperation in the criminal case against FTX founder Sam Bankman-Fried led to a reduced two-year sentence.
Meanwhile, FTX’s bankruptcy plan was approved, allowing former customers to recover up to 142% of their claims.