TLDR
- Caroline Ellison received a five-year trading ban and a 10-year CFTC registration ban.
- Gary Wang received a five-year trading ban and an eight-year CFTC registration ban.
- Both former FTX executives must continue cooperating with the CFTC under the supplemental orders.
- The CFTC currently seeks no restitution, disgorgement or civil monetary penalties from either defendant.
- The regulator cited their cooperation and an $11.02 billion forfeiture order in criminal proceedings.
The CFTC has resolved its civil cases against Caroline Ellison and Gary Wang, imposing multi-year trading and registration bans tied to fraud surrounding FTX’s collapse.
Caroline Ellison and Gary Wang Receive CFTC Bans
The U.S. District Court for the Southern District of New York issued supplemental consent orders on August 19. The orders resolve the CFTC enforcement actions against both former crypto executives.
Former Alameda Research CEO Caroline Ellison received a five-year trading ban. The court also barred her from CFTC registration for 10 years.
Meanwhile, FTX co-founder Gary Wang received a five-year trading ban and an eight-year registration ban. Both must continue cooperating with the CFTC as required under the orders.
The regulator is not seeking civil monetary penalties, restitution or disgorgement from either defendant at this stage. It cited their substantial cooperation and the $11.02 billion forfeiture order entered in the related criminal proceedings.
CFTC Case Followed More Than $8 Billion FTX Customer Fund Shortfall
The CFTC added Ellison and Wang as defendants to its amended complaint in December 2022. The regulator accused them of participating in fraud connected to FTX and Alameda Research.
The case centered on more than $8 billion in FTX customer deposits that were misappropriated. Prosecutors said customer funds moved to Alameda, despite customers expecting FTX to safeguard their assets.
Ellison and Wang accepted liability judgments shortly after the CFTC added them to the case. Both also pleaded guilty to federal criminal charges and later cooperated with prosecutors against FTX founder Sam Bankman-Fried.
Their testimony became part of the criminal case that ended with Bankman-Fried’s conviction in November 2023. A federal judge later sentenced him to 25 years in prison.
FTX and Alameda Previously Faced $12.7 Billion Order
The individual settlements follow a separate August 2024 order involving FTX Trading and Alameda Research. That order required the companies to pay $12.7 billion in monetary relief.
The total included $8.7 billion in restitution for customers and $4 billion in disgorgement. The CFTC described the judgment at the time as its largest recovery involving fraud victims.
Ellison and Wang received different outcomes in their related criminal cases after cooperating with federal authorities. Ellison received a two-year prison sentence, while Wang avoided prison.
The latest court orders resolve their individual CFTC enforcement proceedings but preserve their cooperation requirements. The trading and registration restrictions will also remain effective for the periods set by the federal court.
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