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The Commodity Futures Trading Commission has settled its remaining enforcement claims against former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang, closing the regulator’s individual actions against both former executives.
A Manhattan federal court entered supplemental consent orders imposing trading and registration bans on both defendants. The CFTC is not seeking restitution, disgorgement or civil monetary penalties, citing their cooperation and the $11.02 billion forfeiture order entered in their criminal cases.
Ellison Gets 10-Year Registration Ban, Wang Gets Eight Years
Ellison and Wang are each barred from trading commodity interests for five years. Ellison also received a 10-year CFTC registration ban, while Wang received an eight-year registration ban. The restrictions run from December 23, 2022, when the court entered their original consent orders, rather than from this week’s settlements.
Those earlier orders found Ellison liable on both fraud counts in the CFTC’s amended complaint and Wang liable on the single fraud count charged against him. Both were also permanently barred from violating the Commodity Exchange Act antifraud provisions at issue in the case.
CFTC Waives Monetary Relief After Cooperation and $11.02B Forfeiture
The regulator said it was not seeking additional monetary relief in part because Ellison and Wang provided substantial assistance in its FTX investigation and related proceedings. Both are required to continue cooperating with the CFTC.
Ellison was sentenced in 2024 to 24 months in prison followed by three years of supervised release. Wang received a sentence of time served and three years of supervised release.
The CFTC also cited the $11.02 billion criminal forfeiture order for which Ellison and Wang are jointly and severally liable when explaining why it did not seek restitution, disgorgement or civil monetary penalties.
Bankman-Fried Remains the CFTC’s Last Pending FTX Defendant
The resolutions follow the CFTC’s April settlement with former FTX engineering chief Nishad Singh. Singh agreed to $3.7 million in disgorgement, a five-year trading ban and an eight-year registration ban.
The regulator had separately secured a $12.7 billion judgment against FTX and Alameda in August 2024, including $8.7 billion in restitution and $4 billion in disgorgement.
With the actions against FTX, Alameda, Singh, Ellison, and Wang resolved, the CFTC’s case against Sam Bankman-Fried remains pending. Ellison and Wang must continue cooperating with the regulator under their supplemental consent orders.
