Caroline Ellison turns in all her assets in FTX lawsuit settlement

Caroline Ellison, former CEO of Alameda Research, has agreed to turn over all of her remaining assets to FTX debtors to resolve a lawsuit filed against her by the bankruptcy estate.

In an Oct. 7 filing, the document states that FTX and Caroline Ellison agreed to a settlement agreement requiring the former CEO of Alameda Research to return any remaining assets “that would not otherwise be forfeited to the government or used to pay certain legal fees.” ”.

In addition to returning his remaining assets, Ellison also agreed to cede any equity and ownership rights he may have over his cryptocurrency holdings.

By doing so, the FTX bankruptcy estate sought to recover more than approximately $30 million in the form of equity and bonus payments Ellison received from the firm from December 2020 to February 2022.

FTX went bankrupt in November 2022. The company’s collapse was rife with accusations of fraud and mismanagement against both the stock exchange and its sister company, Alameda Research.

As part of her agreement with FTX, Caroline Ellison pledged to cooperate extensively with debtors in ongoing investigations into the firm’s collapse.

“Ellison has also committed to cooperating with the Debtors in any ongoing investigations and litigation, a benefit the Debtors would not receive even if they prevailed at trial against Ellison.”

In September 2024, Ellison was sentenced to two years in prison by District Judge Lewis A. Kaplan for his involvement in the FTX crypto fraud case. Many people were quick to point out how lenient his sentence was, especially compared to FTX founder Sam Bankman-Fried, who was sentenced to 25 years in prison.

In court, it was revealed that Ellison received a relatively lenient sentence due to his early confession to the crime, and that his cooperation was key to uncovering the extent of Bankman-Fried’s crimes.

Despite his assistance in the case, Ellison would still have to forfeit nearly $11 billion on fraud and money laundering charges.