Photo credit: Stephanie Keith/Bloomberg

Days after FTX’s bankruptcy plan was approved by a US judge, FTX has filed a motion in the United States Bankruptcy Court for the district of Delaware seeking approval for a settlement agreement with the former Alameda Research’s CEO, Caroline Ellison, to transfer all of her assets. 

Additionally, the settlement agreement states Ellison to transfer to the debtors any “equity, ownership rights or other interests she may have in any debtor entity or debtor affiliate” and transfer “any rights” in any crypto assets.

According to the motion, the FTX debtors seek to collect the assets that have not yet been forfeited to the government during her criminal case or used as a means to pay the legal fees. 

According to the court document, it states: “The Settlement Agreement is in the best interests of Plaintiffs’ estates and their creditors because approval of the Settlement Agreement resolves complex disputes between the parties that otherwise would have required further costly and time-consuming litigation with uncertain net recovery.”

Apart from the recovering assets, Ellison will be cooperating with the debtors by “providing, reviewing, clarifying, and authenticating documents and other materials.” Furthermore, the former Alameda Research’s CEO — as part of the settlement — will also answer questions and partake in any other hearings. 

The bankruptcy plan was approved by Bankruptcy Judge John Dorsey on Oct. 7, which will help former customers recover 118% to 142% of the value of their lost assets when FTX filed for bankruptcy back in 2022.