CFTC bans Ellison and Wang after FTX collapse

CFTC settled with Ellison and Wang, imposing five-year trading bans and multi-year registration bans after the FTX collapse. No monetary penalties were imposed due to their cooperation and existing forfeiture orders.

The Commodity Futures Trading Commission (CFTC) has finalized civil settlements with Caroline Ellison and Gary Wang following the collapse of FTX and Alameda Research. Both individuals received five-year trading bans, with Ellison also facing a 10-year registration ban and Wang an eight-year registration ban, effective from December 23, 2022. The U.S. District Court for the Southern District of New York approved these consent orders, requiring Ellison and Wang to continue cooperating with ongoing CFTC investigations. The CFTC cited their substantial cooperation and the existence of an $11.02 billion forfeiture order in the related criminal case as reasons for not seeking additional monetary penalties. Both Ellison and Wang were found liable for fraud and agreed to permanent restrictions against future violations of federal commodities laws. These settlements formally conclude the CFTC's individual civil enforcement actions related to the FTX collapse, which involved the misappropriation of over $8 billion in customer deposits.