As part of this agreement, Ellison is expected to transfer almost all of his assets to FTX creditors. FTX said in its filing on Oct. 7 that Ellison agreed to turn over to creditors any assets in his criminal case that were not turned over to the government or used for legal fees.

In the application, it was stated that after fulfilling the terms of the agreement, Ellison “will not have any assets other than some physical personal belongings”, but no information was shared about the value of these assets.

It is stated that Ellison also agreed to cooperate with FTX’s investigations and cases within the scope of the agreement. This collaboration could include sharing documents or providing information he obtained as the former president of Alameda Research, FTX’s sister company. Additionally, Ellison is also known as the ex-girlfriend of FTX founder Sam Bankman-Fried.

FTX argued that this settlement with Ellison was as beneficial as pursuing him with another lawsuit. This deal will return nearly all of the assets FTX has already acquired from Ellison, and Ellison’s additional collaboration also carries significant value.

FTX argued that a new lawsuit against Ellison would only drain his remaining resources and lead to a loss of time and money.

FTX filed a lawsuit against Ellison in July 2023 with various allegations. These allegations included breaches of fiduciary duties, waste of corporate assets and fraudulent transfers.

In addition, it was requested that the $22.5 million bonus paid to Ellison in February 2022 and the $6.3 million bonus payments paid in 2021 be taken back. The latest filing also brought up call options and FTX shares fraudulently transferred to Ellison.

Ellison played a key role in cooperating with federal prosecutors in the criminal case against Bankman-Fried. Thanks to this cooperation, his sentence was commuted and he was sentenced to a two-year prison sentence on September 24 for his role in the fraud. Bankman-Fried’s case is still ongoing, and Ellison’s statements in this case played a critical role in the process.

Ellison’s agreement with FTX is seen as an important turning point for both FTX’s creditors and the crypto community. Crypto exchange FTX filed for bankruptcy in 2022 and experienced a major financial collapse.

This bankruptcy caused serious fluctuations in the crypto market and victimized many investors who were creditors in the stock market. While various ways are being sought to compensate customers for their losses during the bankruptcy process, Ellison’s transfer of assets is of great importance in this respect.

Bankruptcy Judge John Dorsey approved FTX’s bankruptcy plan on October 7. According to this plan, former customers and crypto holders will receive a refund between 118% and 142% of their claims. These repayments will be calculated based on the value in November 2022, when FTX filed for bankruptcy.

The final hearing regarding the agreement is expected to be held on November 20. In this process, Ellison’s cooperation may contribute to FTX’s financial recovery efforts.