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- Caroline Ellison has agreed to hand over most of her assets to FTX debtors as part of a settlement deal.
- The settlement includes recovering over $30 million in bonuses and equity transfers given to Ellison.
Former Alameda Research CEO Caroline Ellison has agreed to a deal whereby she will practically hand over the FTX debtors almost all of her remaining assets.
This action is a component of a legal dispute resulting from the bankruptcy of once-leading crypto exchange FTX in 2022. Reached in early October 2024, the deal mandates Ellison to surrender up assets not previously taken by the government or designated for her legal defense.
Former CEO of Alameda Research, Caroline Ellison has agreed to turn over all her remaining assets to #FTX debtors to settle a lawsuit filed against her by the bankruptcy estate.
They seek to recover more than $30m in the form of equity & bonus payments received by Ellison! pic.twitter.com/dix9gKk2oC
— Crypto Rand (@crypto_rand) October 9, 2024
Caroline Ellison Cooperation Becomes Key in FTX Efforts to Recover Funds
Considered as a pivotal action in the attempts to reimburse money for FTX creditors is Ellison’s choice to follow the settlement. Initiated by the FTX bankruptcy estate, the case against her aimed to recover large amounts, including $22.5 million in incentives she got in February 2022 and an extra $6.3 million sent to her in 2021.
Ellison decides to completely collaborate instead of contesting the allegations in court, therefore saving both sides the time and expenses of additional litigation.
Although the precise sum of the assets being surrendered is not known, the agreement says Ellison will have very little more than some actual personal items once she satisfies the restrictions. This settlement makes sense for both sides since it lets FTX recover a good amount of what may have been lost to protracted legal fights.
Ellison is a major player in the continuous inquiries because of her involvement in the fall of FTX and her past relationship with Sam Bankman-Fried, the founder of the company.
Her collaboration is intended to offer insightful analysis of the activities of FTX and its affiliate, Alameda Research, therefore possibly clarifying the mismanagement responsible for the company’s collapse.
The deal also emphasizes the difficulties prominent crypto companies like FTX face throughout bankruptcy processes. With billions of dollars at risk, creditors have been waiting impatiently for some kind of rehabilitation. November 20, 2024, is a hearing to formalize Ellison’s settlement when new specifics might surface.
Based on the value of their shares at the time of FTX’s bankruptcy in 2022, it was once said that FTX creditors would anticipate getting between 118% and 142% of their claims.
The U.S. bankruptcy court has approved the repayment schedule, which focuses on creditor cash returns, as we previously noted. Some creditors, however, have indicated a preference for asset distributions, a move meant to reduce the tax obligations connected with the recovery process.
