CFTC bars ex-Alameda and FTX executives from trading for five years

The US Commodity Futures Trading Commission has entered consent orders in its civil cases against former Alameda Research CEO Caroline Ellison and FTX co-founder Zixiao “Gary” Wang, closing out the agency’s enforcement actions against the two former crypto executives. Filed Tuesday in the US District Court for the Southern District of New York, the orders require Ellison and Wang to keep cooperating with the CFTC. Both are subject to a five-year trading ban. Ellison also received a 10-year registration ban, while Wang was given an eight-year registration ban. CFTC enforcement director David Miller said: “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.” The pair were named as defendants in the agency’s original December 2022 complaint alongside former FTX CEO Sam “SBF” Bankman-Fried. The CFTC also said that, in an August 2024 decision, FTX and Alameda agreed to pay $12.7 billion in disgorgement and restitution to affected users. Ellison, Wang and former FTX engineering director Nishad Singh were indicted on fraud charges and later testified against Bankman-Fried at trial over the misuse of customer funds at the now-defunct exchange. Bankman-Fried was found guilty and sentenced to 25 years in prison. Ellison received a two-year sentence and was released early in January. Singh and Wang received time served. Related reporting noted that FTX’s former engineering director paid a $3.7 million fine to resolve a separate CFTC lawsuit.