A court order requires Allison and Wang to continue cooperating with the U.S. Commodity Futures Trading Commission (CFTC), but prohibits them from obtaining licenses from the agency for ten and eight years, respectively. These measures are the result of a lengthy CFTC investigation into the former leaders of the cryptocurrency exchange FTX, which collapsed in 2022, Sam Bankman-Fried.
In September 2024, Allison was sentenced to two years in prison and was released from custody in January 2026. Wang did not receive a prison sentence; he was given three years of probation. The CFTC explained the mitigation of the punishment by the assistance both individuals provided to the investigation during the FTX case. Their agreement to cooperate with the authorities allowed Wang and Allison to avoid a more severe sentence.
The founder of FTX himself, Bankman-Fried, continues to serve his prison sentence and will not be released until 2044. In June, he filed a petition for clemency, but an appeals court rejected his attempt to appeal the verdict. Furthermore, the U.S. Senate has recommended against granting Bankman-Fried a presidential pardon.
Since July 31st, FTX has been distributing $900 million to affected customers as part of the company's reorganization plan. The funds are to be transferred to creditors' accounts at BitGo, Kraken, and Payoneer. Payments are only provided for customers who have completed the identity verification procedure (KYC) and submitted tax forms.
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