Caroline Ellison turns in all her assets in FTX lawsuit settlement

Caroline Ellison, former CEO of Alameda Analysis, has agreed to show over all her remaining property to FTX debtors to settle a lawsuit filed in opposition to her by the chapter property.
In an Oct. 7 submitting, the document states that FTX and Caroline Ellison have agreed on a settlement deal that requires the previous CEO of Alameda Research to return all her remaining property “not in any other case forfeited to the federal government or used to pay sure eligible authorized charges”.
Apart from returning her remaining property, Ellison has additionally agreed to switch any fairness and possession rights that she might maintain over cryptocurrency property.
By doing so, the FTX chapter property sought to get better roughly greater than $30 million within the type of fairness and bonus funds acquired by Ellison from the agency within the interval between December 2020 till February 2022.
FTX went bankrupt in November 2022. The corporate’s downfall was riddled with accusations of fraud and mismanagement aimed toward each the alternate and its sister firm, Alameda Analysis.
As a part of her settlement with FTX, Caroline Ellison has vowed to cooperate extensively with debtors within the ongoing investigations into the collapse of the agency.
“Ellison has additionally dedicated to cooperating with the Debtors in ongoing investigations and litigation — a profit that the Debtors wouldn’t be capable of acquire even when they prevailed at trial in opposition to Ellison”
In Sept. 2024, Ellison was sentenced to two years in prison by District Decide Lewis A. Kaplan for her involvement within the FTX crypto fraud case. Many have been fast to level out how mild her sentence was, particularly in comparison with FTX founder Sam Bankman-Fried, who was sentenced to 25 years in jail.
It was revealed in court docket that Ellison acquired a comparatively lighter sentence because of an early responsible plea and the truth that her cooperation turned the important thing to uncovering the size of Bankman-Fried’s crimes.
Regardless of her help within the case, Ellison nonetheless must forfeit round $11 billion on fraud and cash laundering prices.