The US Commodity Futures Trading Commission has imposed five-year trading bans on former Alameda Research CEO Caroline Ellison and former FTX co-founder Zixiao "Gary" Wang. Consent orders filed in New York close out the agency's civil case tied to the FTX collapse, with Ellison and Wang required to keep cooperating with regulators.
The CFTC announced consent orders resolving its civil cases against Ellison and Wang on Tuesday. The orders, filed in the US District Court for the Southern District of New York, impose a five-year trading ban on both former executives and require them to continue cooperating with the commission.
Registration bans differ between the two
Beyond the trading ban, the CFTC handed Ellison a 10-year registration ban. Wang received an eight-year registration ban. According to the CFTC's enforcement director, David Miller: "Their sanctions, however, reflect their material assistance in the Commission's FTX-related investigations."
The consent orders resolve the CFTC's case against Ellison and Wang, who were named as defendants in the initial December 2022 complaint alongside former FTX CEO Sam Bankman-Fried.
Part of the broader $12.7 billion settlement
The CFTC previously ordered FTX and Alameda to pay $12.7 billion in disgorgement and restitution to affected users under an August 2024 decision. Tuesday's consent orders close out the remaining civil claims against the two former executives individually.
Ellison, Wang and former FTX engineering director Nishad Singh were indicted on fraud charges and testified against Bankman-Fried at trial over their roles in misusing customer funds at the collapsed exchange. Bankman-Fried was found guilty and sentenced to 25 years. Ellison received a two-year sentence and was given early release in January. Singh and Wang were given time served.
Source: Cointelegraph.com News
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