CFTC Enforcement Resolution Bans Ellison and Wang From Trading for Five Years
The Commodity Futures Trading Commission has closed the book on two of the most consequential witnesses in the FTX collapse. In a CFTC enforcement resolution filed this week, the regulator entered supplemental consent orders against Caroline Ellison, the former chief executive of Alameda Research, and Gary Wang, who co-founded both Alameda and FTX. The orders impose five-year trading bans on both former executives and require them to keep cooperating with the agency, closing out a civil case that has run in parallel with their criminal prosecutions since late 2022.
Key takeaways
- The CFTC entered supplemental consent orders in the U.S. District Court for the Southern District of New York on August 19, resolving its civil case against Caroline Ellison and Gary Wang.
- Both received five-year trading bans; Ellison also got a 10-year CFTC registration ban, while Wang received an eight-year registration ban.
- The sanctions technically run from December 23, 2022, when the original consent orders were entered, not from this week’s filing.
- The CFTC is not seeking restitution, disgorgement, or civil monetary penalties from either defendant, citing their cooperation and an existing $11.02 billion criminal forfeiture order.
- Both are still required to continue assisting the agency going forward.
CFTC Resolves Enforcement Actions Against Ellison and Wang
The CFTC enforcement resolution formally ends a case that began when FTX imploded in November 2022 and the regulator expanded its fraud lawsuit against founder Sam Bankman-Fried to include his top lieutenants. The Southern District of New York entered the supplemental orders on August 19, according to the CFTC, wrapping up years of litigation against the two executives who eventually became the government’s most important cooperating witnesses.
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