- Caroline Ellison has agreed to transfer almost all of her remaining assets to FTX debtors as part of a settlement
- The settlement follows Ellison’s guilty plea and cooperation in ongoing investigations into FTX’s collapse
- The deal avoids lengthy litigation and secures Ellison’s cooperation in future FTX-related investigations
Caroline Ellison, former CEO of Alameda Research and key figure in the FTX collapse, has reached a settlement with FTX’s debtors whereby she will hand over all non-property assets to creditors. This agreement, filed in a U.S. Bankruptcy Court in Delaware, comes after Ellison’s cooperation with prosecutors following her guilty plea to charges including wire fraud and conspiracy in December 2022. Ellison was sentenced to 24 months in prison and will surrender in November 2024.
Value Undisclosed
According to the court filing, Ellison will transfer all her remaining assets to FTX debtors, including cryptocurrency holdings and any ownership interests. FTX had originally sought to recover over $22.5 million in bonuses and shares tied to fraudulent transactions made between 2020 and 2022.
“This agreement maximizes recovery for the debtors’ estates,” said the plaintiffs’ legal team, emphasizing the importance of Ellison’s cooperation in ongoing and future litigation related to the FTX case. However, the dollar value of Ellison’s assets is not revealed.
Ellison’s Guilty Plea and Cooperation
Ellison pleaded guilty in December 2022 to multiple charges related to the collapse of FTX, including wire fraud and conspiracy to commit money laundering. She played a pivotal role in running Alameda Research, the sister company of FTX, and admitted to helping facilitate fraudulent activities under Sam Bankman-Fried’s direction.
As part of her plea deal, she agreed to cooperate extensively with prosecutors, which led to her lighter sentence of 24 months in prison. The settlement reflects Ellison’s continued cooperation, as she has committed to assisting with future investigations into FTX and providing documentation or testimony as needed.
