Caroline Ellison, the former co-CEO of Alameda Research, has agreed to hand over the majority of her assets to the FTX bankruptcy estate to settle an ongoing lawsuit. This settlement is part of the legal actions aimed at recovering funds for FTX’s creditors.
Ellison’s Assets Go to FTX Creditors
Ellison agreed to forfeit nearly all her assets that were not already seized by the government. The deal will also include her full cooperation with the FTX bankruptcy estate in ongoing investigations, further aiding efforts to recover lost funds. The assets are expected to cover part of the $22.5 million in bonuses and other payments she received before FTX’s collapse.Court Approves FTX’s Reorganization Plan
The asset transfer follows Judge John Dorsey’s approval of FTX’s reorganization plan, which had widespread support from creditors. Approximately 94% of creditors with “dotcom customer entitlement claims” voted in favor of the plan, which is intended to maximize creditor recoveries from remaining FTX assets.Ellison’s Cooperation with Investigations
Ellison has provided essential information in FTX’s recovery efforts, which helped retrieve hundreds of millions of dollars for creditors. As FTX’s bankruptcy estate continues its legal proceedings, Ellison’s cooperation could bring further clarity and financial recovery to former customers and creditors. Source: The Block
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