The bankrupt exchange FTX has filed a motion to approve a settlement with former Alameda Research CEO Caroline Ellison, under which she will surrender “nearly all her assets.”
The court will review the motion on November 20.
Ellison has agreed to hand over to FTX creditors everything remaining after government confiscation related to her criminal case and payment of legal fees.
Once the conditions are met, she will be left with no assets other than personal physical property. Specific details are not disclosed.
The former CEO of Alameda Research and FTX have agreed to cooperate, including the exchange of documents and information.
The platform’s management believes the settlement will save Ellison time and money that would be required if the legal process continued.
In December 2022, the former head of Alameda Research pleaded guilty to charges related to the collapse of Sam Bankman-Fried’s business empire. She agreed to cooperate with the investigation.
In July 2023, FTX sued Ellison. The management accused her of breaching fiduciary duties, misappropriating corporate assets, and fraud.
The plaintiffs demanded $22.5 million in bonuses for 2022 and $6.3 million for 2021. The latest statement also mentions options to purchase and FTX shares fraudulently transferred to Ellison.
Earlier, the former head of FTX’s Bahamian subsidiary, Ryan Salame, was allowed to delay the start of his sentence to October 13, 2024, due to a dog bite. In May, he was sentenced to 7.5 years in prison.
The former top manager joked about having an “exciting week” ahead. He added that he hasn’t “made friends at camp” in 20 years. The former CEO of FTX Digital Markets hopes his hacking skills will come in handy.
Man I haven’t had to make friends at camp in like 20 years. Hopefully sick hacky sacking skills are still in
— Ryan Salame (@rsalame7926) October 5, 2024
In September, the court sentenced the former head of Alameda Research to two years in prison and the forfeiture of $11 billion on charges of fraud and money laundering.
Co-founder and former CEO of the platform, Sam Bankman-Fried, was found guilty on all charges by a jury in November 2023. In March 2024, he was sentenced to 25 years in prison. Lawyers for SBF filed an appeal against the court’s decision.