Key Takeaways
- Ellison received five-year trading and 10-year registration bans.
- Wang received five-year trading and eight-year registration bans.
- Cooperation helped avert CFTC monetary claims at this time.
CFTC Finalizes Multiyear Restrictions
The Commodity Futures Trading Commission (CFTC) announced Aug. 19 that former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang received multiyear restrictions under supplemental consent orders entered by a federal court in New York. The resolution closes their civil cases while extending the regulatory consequences of FTX’s collapse.
CFTC Director of Enforcement David I. Miller said: “Today’s resolution further underscores the high value this Division places on robust cooperation. Ellison and Wang were senior executives who committed fraud at Alameda and FTX for which they were found liable.” He added:
“Their sanctions, however, reflect their material assistance in the Commission’s FTX-related investigations.”
The agency previously concluded another FTX-related enforcement case involving former engineering chief Nishad Singh, whose CFTC settlement imposed $3.7 million in disgorgement alongside five-year trading and eight-year registration bans. Singh’s April 1 resolution also required continued cooperation, illustrating how assistance can influence sanctions without eliminating regulatory restrictions.
Consent Orders Trace Fraud at FTX and Alameda
Regulators initially charged Ellison and Wang in December 2022 through an amended CFTC fraud complaint that accused FTX and Alameda executives of misappropriating customer assets. The court entered initial consent orders Dec. 23, finding Ellison liable on two fraud counts and Wang responsible for the single fraud count filed against him.
Separate SEC charges against Ellison and Wang described preferential features that allowed Alameda to obtain extensive credit and avoid standard controls on the FTX platform. The securities regulator also alleged that Ellison made misleading statements and helped support FTT’s value while customer funds flowed to Alameda.
The parallel criminal proceedings began after Ellison and Wang entered federal guilty pleas on Dec. 19, 2022. Ellison admitted to seven charges, while Wang pleaded guilty to four counts involving fraud and conspiracy. Each defendant admitted to conspiracy to commit commodities fraud and agreed to assist federal prosecutors.
FTX Collapse and Criminal Outcomes
FTX, a centralized cryptocurrency exchange, collapsed and filed for bankruptcy in November 2022 after mass customer withdrawals exposed its inability to return deposited assets. Prosecutors proved founder Sam Bankman-Fried (SBF) diverted billions of dollars in customer funds to Alameda for investments, loan repayments, political contributions and other spending. A jury convicted him on seven fraud and conspiracy counts, resulting in a 25-year prison sentence that a federal appeals court upheld in June.
Ellison received a two-year criminal sentence after providing testimony that prosecutors used during Sam Bankman-Fried’s trial and conviction. Her transfer to community confinement occurred in October 2025 after she served 11 months at a federal prison in Connecticut. Authorities had projected her final release for February.
Wang avoided an additional prison term after testifying against Bankman-Fried and assisting investigators with the FTX fraud case. His criminal sentencing outcome reflected his cooperation and comparatively limited role, according to the judge. Wang had admitted creating code that gave Alameda preferential access to funds held on the exchange.
Neither supplemental order seeks restitution, disgorgement or civil monetary penalties from Ellison or Wang at this time. Both defendants must continue assisting the commission, while earlier permanent injunctions against future violations remain effective. The CFTC also cited a $11.02 billion criminal forfeiture order for which Ellison and Wang were jointly and severally liable.
