CFTC Settles Cases Against Former Alameda CEO Ellison and FTX Co-Founder Wang

The CFTC has settled its civil cases against Caroline Ellison and Gary Wang, imposing multi-year trading and registration bans while recognizing their cooperation in the wider FTX investigation.

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CFTC Imposes Trading and Registration Bans

The U.S. District Court for the Southern District of New York issued supplemental consent orders on August 19. The orders resolve the CFTC civil enforcement cases against Ellison and Wang.

Ellison, the former Alameda Research CEO, received a five-year trading ban and a 10-year registration ban. Meanwhile, Wang, an FTX co-founder, received a five-year trading ban and an eight-year registration ban.

The restriction periods began on December 23, 2022, when the court entered the original consent orders. Both defendants must also continue cooperating with the CFTC’s investigation and related proceedings.

The court previously found Ellison liable for two fraud counts brought by the CFTC. Wang was found liable for one fraud count, while both accepted permanent restrictions against future violations of federal commodities laws.

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Cooperation Factors Into CFTC Settlement

The CFTC is not currently requiring either defendant to pay restitution, disgorgement, or civil monetary penalties. The regulator cited their cooperation with authorities and the financial recovery ordered in the related criminal proceedings.

David I. Miller, director of the CFTC’s Division of Enforcement, said the outcome reflects the agency’s focus on “effective cooperation.” Both defendants provided assistance during investigations into the collapse of FTX and Alameda Research.

Ellison and Wang also pleaded guilty to federal criminal charges in December 2022. Their cooperation later formed part of the government’s criminal case against FTX founder Sam Bankman-Fried.

A federal jury convicted Bankman-Fried in November 2023 following testimony from former executives, including Ellison and Wang. The court later sentenced him to 25 years in federal prison.

FTX Case Carried Billions in Financial Claims

The CFTC accused FTX executives of improperly transferring billions of dollars in customer assets to Alameda Research. The regulator initially added Ellison and Wang as defendants through an amended complaint filed in December 2022.

Separately, the court approved $12.7 billion in monetary relief against FTX Trading and Alameda Research in August 2024. The order included $8.7 billion in restitution and $4 billion in disgorgement.

The latest orders close the remaining civil monetary questions involving Ellison and Wang. However, both must continue assisting the CFTC under the terms of their settlements.

The regulator also cited an $11.02 billion forfeiture order connected with the federal criminal proceedings when determining the financial terms of their cases.

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