Settlement Agreement

Caroline Ellison, the former co-CEO of Alameda Research, has agreed to transfer most of her assets to FTX debtors to settle a lawsuit filed against her by the FTX bankruptcy estate.

In a Monday filing, FTX Trading Ltd. stated that Ellison has consented to a settlement that involves transferring "substantially all of her assets" not otherwise forfeited to the government or used to pay legal fees to the debtors. Additionally, Ellison agreed to "cooperate extensively" with the FTX bankruptcy estate in ongoing and future investigations.

FTX filed for bankruptcy in late 2022, leading to a lawsuit against Sam Bankman-Fried, Ellison, and other former executives to recover assets. The filing emphasized the aim to recover approximately $22.5 million in bonuses transferred to Ellison in February 2022, along with $6.3 million transferred to her in July and September 2021.

After the settlement, Ellison will retain no remaining assets other than some physical personal property.

On Monday, Judge John Dorsey in the U.S. Bankruptcy Court for the District of Delaware approved FTX’s reorganization plan. About 94% of creditors in the "dotcom customer entitlement claims" class voted in favor of the plan, which represented roughly $6.83 billion in claim value.

Last month, Ellison was sentenced to two years in prison for her involvement in the FTX collapse that caused substantial losses to users. Sam Bankman-Fried received a nearly 25-year sentence in March and was ordered to repay up to $11 billion in losses.

Ellison has been cooperative in aiding investigations into FTX. In a September filing before her sentencing, John J. Ray III, CEO of the FTX bankruptcy estate, noted her valuable assistance, which facilitated the recovery of hundreds of millions of dollars in debtor assets for creditor benefit.