The CFTC imposed multi-year trading and registration bans on Caroline Ellison and Gary Wang, citing their cooperation in the FTX investigation. No financial penalties were ordered.
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The CFTC has settled its civil cases against Caroline Ellison and Gary Wang, imposing multi-year trading and registration bans while recognizing their cooperation in the broader FTX investigation.
The U.S. District Court for the Southern District of New York entered supplemental consent orders on August 19, closing the agency's enforcement actions against the two former FTX executives.
Ellison, who ran Alameda Research, received a five-year ban from trading and a 10-year ban from registering with the CFTC. Wang, a co-founder of FTX, got a five-year trading ban and an eight-year registration ban. The restriction periods started on Dec. 23, 2022, when the court first entered the original consent orders.
Both must keep cooperating with the CFTC's investigation and any related proceedings. The court earlier found Ellison liable on two fraud counts brought by the regulator. Wang was found liable on one fraud count. Both accepted permanent injunctions against future violations of the Commodity Exchange Act.
The CFTC is not currently demanding Ellison or Wang pay restitution, disgorgement, or civil monetary penalties. The agency cited their cooperation with authorities and the $11.02 billion forfeiture order imposed in the related criminal case.
David I. Miller, the CFTC's director of enforcement, called the outcome a reflection of "effective cooperation." Ellison and Wang pleaded guilty to federal criminal charges in December 2022 and testified at the trial of FTX founder Sam Bankman-Fried. A jury convicted Bankman-Fried in November 2023; he received a 25-year prison sentence.
The regulator originally accused FTX executives of moving billions of dollars in customer funds to Alameda. It added Ellison and Wang as defendants through an amended complaint filed in December 2022. In a separate order last August, the court approved $12.7 billion in monetary relief against FTX Trading and Alameda, including $8.7 billion in restitution and $4 billion in disgorgement.
The latest orders resolve the remaining civil monetary questions for Ellison and Wang. Both remain obligated to assist the CFTC under the settlement terms.
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