- Former Alameda CEO Caroline Ellison is still paying for her involvement in the FTX crash.
- The ex-executive must forfeit nearly all her assets.
- The court recently handed Ellison a prison sentence.
Over the past year, the wheels of justice have steadily turned for those involved in the notorious 2022 collapse of the now-defunct exchange FTX. From Sam Bankman-Fried (SBF), the mastermind behind the operation, to his inner circle of associates, legal consequences have hit hard and fast, ranging from prison terms to asset forfeitures.
The latest to face the music is Caroline Ellison, former romantic partner of SBF and a key conspirator in the FTX scandal, who is now grappling with the long arm of justice.
Ellison to Surrender Assets
Recent court documents reveal that Caroline Ellison, the former FTX executive and ex-CEO of Alameda Research, faces asset forfeiture as part of a settlement related to her role in the exchange’s collapse. According to an October 7 filing, FTX is seeking court authorization to seize Ellison’s remaining assets.
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The settlement builds on her guilty plea to mismanaging funds and engaging in fraudulent practices at FTX and her sister hedge fund, Alameda Research. While the specific assets involved were not stated, the filing emphasized that “substantially all of Ellison’s assets, except for certain personal property and assets forfeited to the government, will be transferred to the debtors.”
The forfeiture of Ellison’s assets is part of a broader settlement agreement aimed at recovering funds lost to FTX’s collapse and ensuring that the debtors recover as much value as possible for the repayment of the exchange’s creditors.
In exchange for the forfeiture of her assets, Ellison will avoid further costly litigation, but remains required to cooperate fully with the debtors in their ongoing investigations and related legal proceedings.
Ellison was recently sentenced to a two year prison sentence, along with an additional three years of probation. The 29-year old former CEO will commence her time on November 7, 2024.
Meanwhile, SBF is pulling all possible strings to get out of jail. Read this article for more details on his latest move:
FTX Mogul SBF Seeks ‘Get Out of Jail Card’ with New Appeal Â
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