The US Commodity Futures Trading Commission (CFTC) has imposed five-year trading bans on Caroline Ellison, former chief executive of Alameda Research, and Zixiao “Gary” Wang, co-founder of the now-defunct crypto exchange FTX. Ellison also faces a 10-year registration ban, while Wang is subject to an eight-year restriction, as part of consent orders resolving enforcement actions against both.
The sanctions follow findings that Ellison and Wang were liable for fraud at Alameda and FTX, with the CFTC having ordered $12.7 billion in disgorgement and restitution in August 2024. The measures require the pair to cooperate with ongoing investigations and mark the latest step in a broader regulatory crackdown on individuals linked to the collapse of FTX.
Ellison, who was sentenced to two years in prison in 2023, was released early in January of an unspecified year, while Wang remains under separate legal proceedings. The CFTC’s enforcement director, David Miller, stated the sanctions reflect the pair’s “material assistance” in the agency’s investigations into FTX-related misconduct.
The rulings underscore the regulatory focus on holding senior executives accountable for their roles in the collapse of FTX, which led to billions in losses for investors. Both Ellison and Wang have previously faced criminal charges, with Wang’s case still pending in US courts.
Written by Steven Cook
Regulation Desk
