Key facts
- CFTC settled civil cases against former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang.
- Ellison and Wang received five-year trading bans.
- Ellison received a 10-year registration ban; Wang received an eight-year registration ban.
- Sanctions reflect cooperation with CFTC investigations into FTX and Alameda.
- FTX and Alameda agreed to pay $12.7 billion in restitution and disgorgement.
The U.S. Commodity Futures Trading Commission (CFTC) has finalized consent orders against former Alameda Research CEO Caroline Ellison and FTX co-founder Zixiao “Gary” Wang, imposing significant trading and registration bans. The orders, issued by the U.S. District Court for the Southern District of New York, include a five-year ban from trading commodity interests for both executives. Ellison also faces a 10-year ban from registering with the CFTC, while Wang is subject to an eight-year registration ban, with both restriction periods beginning December 23, 2022.
CFTC enforcement director David I. Miller highlighted that the outcome reflects the agency’s focus on "effective cooperation," noting that both defendants provided material assistance during investigations into the collapse of FTX and Alameda Research. Ellison and Wang had previously pleaded guilty to federal criminal charges in December 2022, and their cooperation was instrumental in the government's criminal case against FTX founder Sam Bankman-Fried, who was convicted in November 2023 and sentenced to 25 years in prison.
The CFTC accused FTX executives of improperly transferring billions of dollars in customer assets to Alameda Research. In August 2024, the court approved $12.7 billion in monetary relief against FTX Trading and Alameda Research, comprising $8.7 billion in restitution and $4 billion in disgorgement. The latest orders close the remaining civil monetary questions involving Ellison and Wang, though both must continue assisting the CFTC under their settlement terms.