Odaily News - The U.S. Commodity Futures Trading Commission (CFTC) announced that the U.S. District Court for the Southern District of New York has signed supplemental consent orders against Caroline Ellison, former CEO of Alameda Research, and Gary Wang, co-founder of FTX.

According to the court orders, Ellison and Wang must continue to cooperate with the CFTC's investigation while facing trading and registration restrictions. Specifically, Ellison is subject to a 5-year trading ban and a 10-year registration ban; Wang faces a 5-year trading ban and an 8-year registration ban. The relevant restriction periods are calculated from December 23, 2022, the date the initial consent orders were signed.

Previously, on December 23, 2022, the court found Ellison liable for two fraud charges brought by the CFTC and found Wang liable for one fraud charge. Their initial consent orders permanently prohibited them from violating the Commodity Exchange Act and related CFTC anti-fraud regulations.

David I. Miller, Director of the CFTC's Division of Enforcement, stated that this ruling reflects the regulator's emphasis on "effective cooperation." Although Ellison and Wang, as executives of Alameda and FTX, participated in the related fraudulent activities and were held liable, regulators granted mitigating treatment in light of their significant assistance in the FTX-related investigations.

The CFTC stated that it will not currently require Ellison and Wang to pay restitution, disgorgement, or civil monetary penalties, primarily considering the extent of their cooperation in the investigations and related criminal cases, as well as the $11.02 billion asset forfeiture order involved in the U.S. criminal cases. Both individuals have previously pleaded guilty in their criminal cases, including admitting to conspiracy to commit commodities fraud and multiple other charges.