FTX has filed a settlement agreement with Caroline Ellison, the former CEO of Alameda Research, asking her to give up nearly all of her assets. This motion, submitted on October 7, requests that Ellison hand over any assets not already forfeited to the government or used for legal fees to FTX creditors.

Ellison has agreed to comply, leaving her with only some physical personal property. The exact value of the assets remains unclear. In return, she will assist with FTX’s ongoing investigations and court cases, providing valuable information she gained as the ex-head of Alameda and former girlfriend of FTX founder Sam Bankman-Fried.

FTX argues that this settlement is more beneficial than continuing legal action. The deal allows them to recover nearly everything they could get through litigation while also benefiting from Ellison's cooperation. The company noted that pursuing a lawsuit would only waste more time and money, depleting Ellison’s remaining resources.

FTX had previously sued Ellison in July 2023, seeking to recover millions in bonuses and fraudulent transfers, including $22.5 million in 2022 bonuses and $6.3 million from 2021. The settlement also mentions fraudulent transfers of FTX equity to Ellison.

A hearing on the settlement is set for November 20. Ellison, who has cooperated with federal prosecutors, received a reduced two-year sentence for her involvement in the fraud. Meanwhile, FTX’s bankruptcy plan was approved, with former customers expected to recover between 118% and 142% of their claims.