Bankrupt exchange FTX has filed a motion to approve a settlement with former Alameda Research CEO Caroline Ellison that will see it hand over "substantially all of its assets."
The court will consider the petition on November 20.
Allison agreed to turn over to FTX's creditors everything she had left after the government seized property as part of her criminal case and paid for her legal fees.
Once the conditions are met, she will have no assets other than physical personal property. Specific details are not specified.
The former CEO of Alameda Research and FTX agreed to cooperate, including by exchanging documents and information.
The platform's management is convinced that the settlement will save Ellison time and money that would have been required if the lawsuit had continued.
In December 2022, the former head of Alameda Research pleaded guilty to charges related to the collapse of Sam Bankman-Fried's business empire. She agreed to cooperate with the investigation.
In July 2023, FTX sued Ellison, accusing her of breach of fiduciary duty, embezzlement of corporate assets, and fraud.
The plaintiffs are seeking $22.5 million in bonuses for 2022 and $6.3 million for 2021. The latter claim also includes call options and FTX shares fraudulently transferred to Ellison.
Former FTX Bahamas chief Ryan Salama was previously granted a deferment to October 13, 2024, due to a dog bite. He was sentenced to 7.5 years in prison in May.
The former top manager joked that he was in for an âexciting week.â He added that he hadnât âmade friends at campâ in 20 years. The former FTX Digital Markets CEO expects his hacking skills to come in handy.
Recall that in September, the court sentenced the former head of Alameda Research to two years in prison and confiscation of $11 billion on charges of fraud and money laundering.
The platform's co-founder and former CEO Sam Bankman-Fried was found guilty on all charges by a jury in November 2023. In March 2024, he was sentenced to 25 years in prison. SBF's lawyers have appealed the court's decision.
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