CFTC Resolves Enforcement Actions Against Caroline Ellison and Gary Wang Over FTX-Alameda Fraud

The Commodity Futures Trading Commission (CFTC) has announced that the U.S. District Court for the Southern District of New York entered supplemental consent orders against former Alameda Research CEO Caroline Ellison and former Alameda and FTX co-founder Gary Wang, resolving the regulator's civil enforcement actions against the two executives. Under the supplemental orders, Ellison is subject to a five-year trading ban and a 10-year registration ban, while Wang faces a five-year trading ban and an eight-year registration ban. Both bans run from the entry date of the court's initial consent orders on December 23, 2022. The orders also require both individuals to maintain ongoing cooperation with the Commission. The initial December 2022 consent orders found Ellison liable on both fraud counts charged in the CFTC's amended complaint and found Wang liable on a single fraud count. Those earlier orders permanently enjoined both Ellison and Wang from committing further violations of the antifraud provisions under the Commodity Exchange Act and CFTC regulations. CFTC Director of Enforcement David I. Miller stated that the resolution highlights the significance placed on substantial cooperation. He noted that while both executives committed fraud and were found liable, the sanctions imposed reflect their material assistance in the regulator's broader investigations related to FTX. The supplemental orders specify that the CFTC is not pursuing civil monetary penalties, restitution, or disgorgement at this time. The Commission attributed this decision to the extensive cooperation provided by Ellison and Wang in its investigation and parallel criminal cases in the Southern District of New York, where both pled guilty to multiple criminal charges—including conspiracy to commit commodities fraud—and were subjected to an $11.020 billion joint and several forfeiture order.