The Commodity Futures Trading Commission has resolved its enforcement actions against former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang, according to the agency's announcement. Both executives face five-year trading bans and must continue cooperating with the regulator.
The orders mark the conclusion of the CFTC's civil enforcement proceeding against the pair, filed in the wake of FTX's November 2022 collapse. The agency did not impose financial penalties in either case, focusing instead on restrictions on future market participation and the cooperation mandate. The settlement came after Ellison and Wang had already pleaded guilty to criminal charges in federal court; Ellison received a three-year prison sentence in 2024, while Wang has not yet been sentenced.
Ellison served as CEO of Alameda Research, the trading firm operated by FTX founder Sam Bankman-Fried that received preferential access to FTX customer deposits. Wang was FTX's technology officer and key architect of the systems that enabled Alameda's special treatment. Both testified extensively during Bankman-Fried's trial, where prosecutors portrayed them as willing participants in the scheme to misappropriate customer funds.
The five-year ban prevents both from trading in commodities futures and options on CFTC-regulated exchanges, a restriction that extends through 2031. The cooperation requirement obligates them to remain available for testimony and document production in any future related proceedings the CFTC or other authorities may pursue.
The CFTC had also brought an enforcement action against FTX itself, which the exchange settled in 2024 by agreeing to liquidate and pay a penalty. The Ellison and Wang enforcement actions were separate civil proceedings, distinct from their criminal cases.
The five-year ban places both executives among the longest-restricted individuals in recent CFTC enforcement history. The agency typically imposes such restrictions on individuals found to have engaged in fraudulent or manipulative conduct, though the duration varies based on the severity of violations and the defendant's cooperation in resolving the case.
The number to watch is whether the cooperation order leads to testimony from either executive in pending civil litigation filed by FTX creditors and shareholders seeking to recover losses from the collapse.
