CFTC Imposes 5-Year Trading Ban on FTX Co-Founders Ellison and Wang

08/21 01:06

On August 21, the U.S. Commodity Futures Trading Commission (CFTC) announced that the U.S. District Court for the Southern District of New York has issued a supplemental consent order against Caroline Ellison, former CEO of Alameda Research, and Gary Wang, co-founder of Alameda and FTX, officially resolving the CFTC's enforcement actions against them. According to the court order, both Ellison and Wang are required to continue cooperating with the CFTC's investigation. Ellison has been subjected to a 5-year trading ban and a 10-year registration ban, while Wang faces a 5-year trading ban and an 8-year registration ban. The duration of these bans is calculated from the effective date of the initial consent order signed by both individuals on December 23, 2022. In 2022, the court found Ellison liable for two counts of fraud related to the CFTC's allegations, while Wang was found liable for one count of fraud, permanently prohibiting both from violating the Commodity Exchange Act and related CFTC anti-fraud regulations. Notably, the CFTC is not currently seeking additional restitution, recovery of illegal gains, or civil penalties against Ellison and Wang. The CFTC's enforcement division stated that this decision is partly based on the significant cooperation provided by both individuals during the investigation and related litigation, including their guilty pleas in federal criminal cases and assistance with investigations related to FTX. David I. Miller, head of the CFTC's enforcement division, stated that while Ellison and Wang, as senior executives of Alameda and FTX, committed fraud and were found liable by the court, their ultimate penalties reflect their important assistance to the CFTC's investigation. Additionally, both have acknowledged multiple offenses in related criminal cases, including conspiracy to commit commodity fraud, and jointly bear responsibility for approximately $11.02 billion in forfeiture orders. This consent order signifies the formal conclusion of the CFTC's enforcement actions against Ellison and Wang.
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