Both were banned from trading for 5 years; CFTC officially closes enforcement cases against two FTX co-founders

Odaily News, the U.S. Commodity Futures Trading Commission (CFTC) disclosed that the U.S. District Court for the Southern District of New York has issued supplemental consent orders to Caroline Ellison, former CEO of Alameda Research, and Gary Wang, co-founder of Alameda and FTX, formally resolving enforcement cases against the two. Both are required to continue cooperating with the CFTC's investigation. Ellison was handed a 5-year trading ban and a 10-year registration ban, while Wang received a 5-year trading ban and an 8-year registration ban. The ban periods begin from the effective date of the initial consent orders signed on December 23, 2022.

The CFTC is currently not seeking additional disgorgement, restitution of ill-gotten gains, or civil monetary penalties from the two. The CFTC's Enforcement Division stated that both individuals provided substantial assistance during the investigation and related litigation, including pleading guilty in federal criminal cases and assisting with investigations into FTX-related matters. In 2022, the court found Ellison liable for two counts of fraud alleged by the CFTC, and Wang liable for one fraud charge, permanently prohibiting both from violating the Commodity Exchange Act and CFTC-related anti-fraud regulations. Both have admitted to multiple offenses in related criminal cases, including conspiracy to commit commodity fraud, and jointly bear responsibility for a forfeiture order of approximately $11.02 billion.