Former Alameda CEO forfeits $28.8M to aid FTX creditors
Caroline Ellison, the former CEO of Alameda Research, has agreed to relinquish most of her assets to help settle claims related to the collapse of FTX.
This move comes as part of the broader effort by FTX’s bankruptcy estate to recover funds for creditors impacted by the exchange’s downfall in late 2022.
As per court documents filed on Monday, Ellison will surrender approximately $22.5 million in bonuses she received in early 2022, along with an additional $6.3 million from transfers made to her in mid-2021.
Following this settlement, Ellison will be left with only personal items, having no significant assets remaining.
Beyond the financial aspect, Ellison has committed to cooperating fully with the bankruptcy estate in ongoing investigations, which could assist in recovering more funds for those affected.
FTX’s legal team views the settlement as a practical resolution, arguing that pursuing further litigation would drain more of Ellison’s limited resources and potentially delay the recovery process.
The settlement also follows Judge John Dorsey’s approval of FTX’s reorganization plan on Monday, with the support of 94% of creditors representing $6.83 billion in claims.
This plan marks a critical step toward compensating those affected by the exchange’s collapse.
Ellison’s legal troubles are far from over. Recently sentenced to two years in prison for her involvement in the misuse of FTX customer funds, she is now a key witness in the ongoing case against FTX founder Sam Bankman-Fried, who received a 25-year prison sentence earlier this year.
