Caroline Ellison and Gary Wang, former executives at the collapsed cryptocurrency exchange FTX and its associated hedge fund Alameda Research, have reached settlements with US regulators that include trading bans but no financial penalties. The Commodity Futures Trading Commission (CFTC) revealed the settlements on Wednesday, citing the extensive cooperation of both individuals in investigations following the downfall of FTX and Alameda.
Ellison, 31, who led Alameda Research and had a past romantic relationship with FTX founder Sam Bankman-Fried, will be prohibited from trading for five years and from registering with the CFTC for 10 years. Wang, 33, a co-founder and former chief technology officer of FTX, will face a five-year trading ban and an eight-year ban from registering with the CFTC.
The CFTC stated that it did not pursue financial penalties or the return of ill-gotten gains from Ellison and Wang due to their significant assistance in the agency's investigations. CFTC Enforcement Director David Miller noted that while both were senior executives involved in fraudulent activities, their sanctions reflect their material aid in the commission's inquiries.
These settlements follow the spectacular collapse of FTX in 2022, which led to bankruptcy filings and the exposure of an alleged $8 billion scheme where customer funds were purportedly used to cover losses at Alameda Research. Sam Bankman-Fried, the founder of FTX, is currently serving a 25-year prison sentence after being convicted on seven felony charges related to fraud.
Ellison had pleaded guilty to seven criminal counts, including fraud and conspiracy, and admitted to fabricating balance sheets to conceal Alameda's financial distress. She was sentenced to two years in prison in 2024 but was released in January after serving 14 months. Her cooperation was described as "substantial" by the sentencing judge, though her crimes warranted the 24-month sentence. She was also ordered to forfeit $11 billion in assets.
Wang, along with Nishad Singh, FTX's former head of engineering, also pleaded guilty and cooperated with authorities. Both received time served, meaning they did not have to spend additional time in prison beyond what they had already served awaiting trial. In April, the CFTC announced that Singh would return $3.7 million in illicit profits and face temporary trading and registration bans.
Another former FTX executive, Ryan Salame, who did not cooperate with prosecutors, received a sentence of over seven years in prison in 2024.
