The U.S. Commodity Futures Trading Commission (CFTC) has concluded proceedings against Caroline Ellison, former head of Alameda Research, and Gary Wang, co-founder of FTX.
The court approved settlements under which both are barred from trading on CFTC-regulated markets for five years. Ellison is also prohibited from registering as a participant in a regulated market for 10 years, while Wang faces an eight-year ban.
The easing of sanctions is linked to Ellison and Wang’s substantial assistance in the investigation into the collapse of FTX. Both admitted involvement in fraudulent schemes and provided testimony against Sam Bankman-Fried.
The CFTC proceedings began back in December 2022. In August 2024, the court ordered FTX and Alameda to pay affected customers a total of $12.7 billion in compensation and restitution for illegally obtained funds.
Bankman-Fried himself was previously sentenced to 25 years in prison. Ellison received a two-year sentence, while Gary Wang and FTX’s former chief technology officer Nishad Singh were each given sentences within the length of time they had already served.