Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at how former Alameda Research CEO Carloine Ellison will have to surrender the majority of her assets to the FTX debtors as part of the bankruptcy settlement.
Ellison to Surrender Majority of Assets
Former CEO of Alameda Research, Caroline Ellison, has made an agreement to transfer almost all of her remaining assets to FTX debtors as part of her settlement with the FTX bankruptcy estate. This was detailed as part of a court filing last Monday, with the aim to recover the assets in benefit of creditors impacted by the collapse of FTX. The filing was made by FTX Trading Ltd. and stated that Ellison will transfer “substantially all of her assets” to the FTX debtors, however, any assets already seized by the government will not be included. Ellison has also agreed to cooperate with the estate’s efforts to wind down the firm, assisting in generating more value for creditors.
The litigation will seek to reclaim approximately $22.5 million in bonuses Ellison received in February 2022, along with $6.3 million transferred to her in July and September 2021. Ellison will only retain her physical personal property after the asset transfer, although their value remains unclear. This settlement follows last Monday's FTX bankruptcy plan approval by Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware.
FTX have argued that this move is the best choice and most beneficial due to the fact they have technically secured “substantially all that could be recovered” through the settlement. It was also noted that Ellison's cooperation with the bankruptcy proceedings is expected to aid the estate’s value recovery efforts. Last month Ellison was sentenced to 24 months in prison for her role in the collapse of FTX.
Roughly 94% of creditors within the “dotcom customer entitlement claims” class support this plan, which covers roughly 94% of creditors within the “dotcom customer entitlement claims” class. Under this plan, the failed firm’s former customers could recover between 118% and 142% of their claim values, with speculations that customers with claims under $50,000 could start receiving their payments before the end of this year.
Have a great day.
Peace. CryptoGod-1.
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