The U.S. Commodity Futures Trading Commission (CFTC) has resolved its enforcement actions against a pair of key players in the FTX crypto scandal — Caroline Ellison, former CEO of hedge fund affiliate Alameda, and Gary Wang, a co-founder of FTX and Alameda. Both cooperated with the regulator in its case against FTX.
Under consent orders filed in the U.S. district court for the Southern District of New York, Ellison is banned from trading for five years and banned from registration for 10 years. Wang agreed to a five-year trading ban and an eight-year registration ban.
Those restrictions run from December 2022, when initial consent orders were entered against them amid the collapse of FTX.
The orders also require both to continue cooperating with the CFTC, but also acknowledge that the regulator will not seek restitution, disgorgement or monetary penalties against them.
They are already jointly liable for US$11 billion in forfeiture in the criminal cases against them, where each pleaded guilty to several charges, including conspiracy to commit commodities fraud.
“Today’s resolution further underscores the high value this division places on robust cooperation,” said David Miller, director of enforcement at the CFTC, in a statement.
“Ellison and Wang were senior executives who committed fraud at Alameda and FTX for which they were found liable. Their sanctions, however, reflect their material assistance in the commission’s FTX-related investigations,” he added.