The Commodity Futures Trading Commission (CFTC) has barred former Alameda Research chief executive Caroline Ellison from trading for five years as part of the final resolution of her civil case linked to the collapse of FTX.
FTX co-founder Gary Wang has also received a multiyear restriction under a supplemental consent order entered by a federal court in New York. The CFTC said neither Ellison nor Wang would face restitution, disgorgement or civil monetary penalties at this time, although both must continue to assist the regulator.
The orders close the CFTC’s civil proceedings against the two former senior executives but leave permanent injunctions preventing future violations in place.
CFTC Director of Enforcement David I. Miller said: “Today’s resolution further underscores the high value this Division places on robust cooperation. Ellison and Wang were senior executives who committed fraud at Alameda and FTX for which they were found liable.”
The regulator had accused Ellison and Wang of fraud in an amended complaint filed in December 2022. It alleged that executives at FTX and its trading affiliate Alameda Research misappropriated customer assets.
Initial consent orders entered by the court on 23 December found Ellison liable on two fraud counts, while Wang was held responsible for the single fraud count brought against him.
Separate charges brought by the Securities and Exchange Commission (SEC) alleged that Alameda was given preferential access to credit on the FTX platform and was allowed to avoid controls applied to other customers. The SEC also said Ellison had made misleading statements and helped support the value of FTT, FTX’s cryptocurrency token, while customer money was transferred to Alameda.
The CFTC’s action follows criminal cases in which Ellison and Wang pleaded guilty in federal court on 19 December 2022. Ellison admitted seven charges, while Wang pleaded guilty to four counts involving fraud and conspiracy. Both acknowledged conspiring to commit commodities fraud and agreed to co-operate with federal prosecutors.
FTX, a centralised cryptocurrency exchange, filed for bankruptcy in November 2022 after a wave of customer withdrawals revealed that it could not return deposited assets. Prosecutors established that founder Sam Bankman-Fried had diverted billions of dollars in customer funds to Alameda for investments, loan repayments, political contributions and other spending.
A jury convicted Bankman-Fried on seven fraud and conspiracy counts. He was sentenced to 25 years in prison, a punishment upheld by a federal appeals court in June.
Ellison was given a two-year criminal sentence after giving evidence used by prosecutors during Bankman-Fried’s trial and conviction. She spent 11 months at a federal prison in Connecticut before being transferred to community confinement in October 2025. Authorities had previously projected that she would be released fully in February.
Wang did not receive an additional prison term after testifying against Bankman-Fried and helping investigators examine the FTX fraud. The judge said his sentencing outcome reflected his co-operation and comparatively limited role. Wang had admitted writing code that gave Alameda preferential access to funds held on the exchange.
The CFTC also referred to a $11.02bn criminal forfeiture order for which Ellison and Wang were jointly and severally liable. The latest orders do not seek further financial penalties from either defendant at this stage.
The regulator has previously resolved another FTX-related enforcement case involving former engineering chief Nishad Singh. His settlement included $3.7m in disgorgement, a five-year trading ban and an eight-year registration ban. Singh’s resolution on 1 April also required continued co-operation, demonstrating how assistance can affect sanctions without removing regulatory restrictions.
Separately, the CFTC has set out how bitcoin, ether and stablecoins operate in derivatives margin, using risk-based haircuts and tighter limits on their use.
