A federal court in New York has entered supplemental consent orders that close the Commodity Futures Trading Commission’s remaining fraud case against former Alameda Research chief Caroline Ellison and FTX co-founder Gary Wang. The action appears to mark the final step in the regulator’s case stemming from the collapse of FTX in November 2022.
Neither Ellison nor Wang received new monetary penalties in the latest orders. Instead, the CFTC imposed market and registration bans while pointing to their extensive cooperation with investigators and the $11.02 billion criminal forfeiture they already owe.
Bans imposed, but no new financial penalties
Ellison was given a five-year trading ban and a 10-year registration ban. Wang received the same five-year trading restriction, along with an eight-year registration bar. According to the orders, the bans run from December 2022, meaning Ellison’s trading restriction would end in late 2027, while the registration bans expire in 2032 for Ellison and 2030 for Wang.
The CFTC did not seek restitution, disgorgement, or civil monetary penalties in these final orders. The regulator cited both defendants’ cooperation in FTX-related investigations and the large forfeiture amount already imposed through their criminal cases.
Case traces back to the FTX collapse
Ellison and Wang were among the senior insiders found liable for fraud tied to Alameda Research and FTX. The CFTC’s broader case began shortly after the exchange’s collapse, when the agency sued Sam Bankman-Fried, FTX, and Alameda in December 2022.
Regulators alleged that more than $8 billion in customer deposits had been misused. Wang was specifically accused of writing code that allowed funds to be drained. In 2024, FTX and Alameda settled with the CFTC for $12.7 billion.
Parallel action from other regulators
The latest CFTC orders follow other enforcement outcomes connected to the same events. The Securities and Exchange Commission had already imposed comparable leadership bans on Ellison and Wang without adding new fines, according to the report.
US agencies said the pair’s assistance supported broader investigations into FTX-related matters. That cooperation appears to have played a central role in the decision not to add further monetary punishment in the CFTC’s final resolution.
What remains in the wider FTX saga
Sam Bankman-Fried is serving a 25-year prison sentence after an appeals court upheld his conviction. The report said he can still petition the US Supreme Court or seek a presidential pardon, even as some senators have introduced a resolution opposing clemency.
Beyond the criminal cases and regulatory actions, the broader FTX story is approaching its final stages. According to the report, only one remaining claim dispute is still unresolved in the bankruptcy process, making this latest court action another sign that the long-running fallout from FTX is nearing closure.
Source: beincrypto.com