Crypto exchange FTX has filed a motion for settlement with former Alameda Research head Caroline Ellison, proposing that Ellison must give up almost all of her remaining assets. A hearing on this settlement is scheduled for November 20.
The motion, filed on October 7, proposed approval from the court to allow a settlement agreement with Ellison under which she agrees to transfer any assets that have not been seized by the government or used to pay legal fees in her criminal case to FTX creditors.
The filing states that after fulfilling the terms of the agreement, “Ellison will no longer own any assets, except for certain personal physical property.” Note that the filing does not mention anything about the value of the assets she will turn over.
She also agreed to cooperate with investigations and legal courses of the now bankrupt crypto exchange. As a part of this agreement, she will share documents or information gained during her time as the former head of FTX’s sister company and CEO Sam Bankman-Fried’s ex-girlfriend. The recovery plan in the latest filing mentions call options and FTX equity which were fraudulently transferred to Ellison, who was recently sentenced a reduced sentence of two years on September. 24.
FTX believes this settlement would be as advantageous as pursuing Ellison’s assets through another lawsuit, as it effectively covers all recoverable assets. Additionally, her further cooperation offers significant value.
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