CFTC Imposes Sanctions on Former Alameda and FTX Executives

The U.S. District Court for the Southern District of New York has entered supplemental consent orders against Caroline Ellison, former CEO of Alameda Research, and Gary Wang, co-founder of Alameda and FTX. These orders require both individuals to continue cooperating with the CFTC and impose bans on trading and registration for specified periods—five years for Ellison and Wang, with additional registration bans for Wang. The orders follow initial consent orders issued in December 2022, which found both liable on fraud charges related to Alameda and FTX. The court's rulings permanently enjoin Ellison and Wang from violating antifraud provisions of the Commodity Exchange Act and regulations.

The enforcement actions are part of the CFTC’s ongoing investigation into Alameda and FTX. The supplemental orders acknowledge that the Commission is not seeking restitution, disgorgement, or civil penalties at this time, citing the cooperation of Ellison and Wang in the investigation, including their guilty pleas to criminal charges such as conspiracy to commit commodities fraud. The criminal cases, United States v. Ellison and United States v. Wang, resulted in a joint forfeiture order of approximately $11.02 billion.

The CFTC emphasizes the importance of cooperation from senior executives in its enforcement efforts, highlighting that the sanctions reflect their material assistance in the investigation. These actions mark a significant step in regulatory accountability within the crypto industry, especially concerning high-profile figures involved in Alameda and FTX.