SEC Slaps FTX Execs With Decade-Long Bans Over Fund Misuse

SEC settlements bar former FTX and Alameda executives from corporate leadership for up to 10 years, following allegations of misappropriating customer funds and securities law violations. The bans require court approval.

The U.S. Securities and Exchange Commission has reached proposed settlements with former FTX and Alameda Research executives Caroline Ellison, Gary Wang, and Nishad Singh, following their roles in the FTX collapse. Ellison agreed to a 10-year ban from serving as an officer or director of any public company, while Wang and Singh face eight-year bans. All three are subject to permanent injunctions against future securities law violations and five-year conduct-based restrictions. The SEC alleged that the trio participated in misappropriating over $8 billion in customer funds, exempted Alameda from risk controls, and diverted FTX customer assets for trading activities. The settlements, which require court approval, were reached without the executives admitting or denying the allegations. Their cooperation with prosecutors was noted, and they avoided significant prison time. The SEC's actions underscore increased regulatory scrutiny and accountability for leadership in the cryptocurrency sector, setting a precedent for future enforcement against misconduct in digital asset firms.