Odaily Planet Daily reports that the U.S. Commodity Futures Trading Commission (CFTC) announced that 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 FTX.
Pursuant to a court order, Ellison and Wang must continue to cooperate with the CFTC investigation and are subject to trading and registration restrictions. Ellison is prohibited from trading for five years and from registration for ten years; Wang is prohibited from trading for five years and from registration for eight years. The restriction periods commence from December 23, 2022, the date the initial consent order was signed.
Previously, on December 23, 2022, the court found Ellison liable for two counts of fraud alleged by the CFTC and Wang liable for one count of fraud. The initial consent orders permanently prohibited both individuals from violating the Commodity Exchange Act and the CFTC’s related anti-fraud provisions.
David I. Miller, head of the CFTC’s Enforcement Division, stated that this ruling reflects the regulator’s emphasis on “effective cooperation.” Although Ellison and Wang, as executives of Alameda and FTX, were found liable for their involvement in the related fraud, the regulator granted reduced penalties due to their significant assistance in the FTX-related investigation.
The CFTC stated that it will not currently require Ellison and Wang to pay restitution, disgorge ill-gotten gains, or pay civil monetary penalties, primarily considering their level of cooperation during the investigation and related criminal proceedings, as well as the $11.02 billion asset forfeiture order in the U.S. criminal case. Both individuals have previously pleaded guilty in the criminal case, including admitting to conspiracy to commit commodities fraud and other charges.