Caroline Ellison agrees to hand over assets in FTX settlement

Former Alameda Research CEO Caroline Ellison has agreed to transfer the majority of her assets to FTX debtors.

Ellison consented to a settlement that involved giving the debtors "substantially all of her assets" that would not otherwise be forfeited to the government or used to cover legal costs, according to a filing made on Monday by FTX Trading Ltd. Ellison also consented to "cooperate extensively" in current and future investigations with the FTX bankruptcy estate. 

The lawsuit sought to recover approximately $22.5 million in bonus payments that were transferred to Ellison in February 2022 and $6.3 million that were transferred to her in July and September 2021, the filing on Monday reaffirmed. 

Other than some physical personal property, Ellison won't have any assets left over after the settlement, according to the filing from FTX. 

US bankruptcy judge approves FTX Plan of Reorganization

FTX's reorganization plan was approved by the U.S. Bankruptcy Court for the District of Delaware Judge John Dorsey on Monday during a hearing. 

Nearly all of the creditors of the now-defunct cryptocurrency company FTX will eventually profit from the money they invested in the exchange, a federal bankruptcy judge ruled Monday. Within 60 days of the Plan's take-effect date, 98% of FTX's creditors by number will receive approximately 119% of the total amount of their allowed claims, subject to know-your-customer and other distribution requirements. 

Ellison receives 2 year sentence for her involvement in FTX's demise

Ellison received a two-year sentence last month for her part in the FTX collapse, which cost users billions of dollars. 

In addition to imposing the sentence, Judge Lewis Kaplan of the District Court of Southern New York decided that Ellison would also have to forfeit the roughly $11 billion she had received from FTX. Kaplan also stated that Ellison will surrender on or after November 7. Ellison is represented in the bankruptcy case by Wilmer Cutler Pickering Hale and Dorr LLP, while FTX is represented by Sullivan & Cromwell LLP and Landis Rath & Cobb LLP. Filed under In re FTX Trading Ltd., Bankr. D. Del., No. 22-11068, the case is still ongoing as FTX navigates its complex financial and legal issues. 

Through her cooperation with investigators, Ellison has assisted the FTX bankruptcy estate in recovering assets worth hundreds of millions of dollars. The CEO of the FTX bankruptcy estate, John J. Ray III, commended her help in a September filing, saying that her collaboration helped creditors. 

FTX executives sentencing

Ellison was Sam Bankman-Fried's ex-girlfriend and a senior executive at the company. In March, FTX founder Sam Bankman-Fried was given a sentence of almost 25 years in prison and mandated to reimburse up to $11 billion in losses incurred by lenders and investors. 

On October 13, Ryan Salame, the CEO of FTX Digital Markets, will begin his 90-month sentence. Both co-founder Gary Wang and former FTX engineering director Nishad Singh entered guilty pleas and will be sentenced on November 20 and October 30, respectively. 

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