ME News reports that on August 19 (UTC+8), the U.S. Commodity Futures Trading Commission (CFTC) announced that the U.S. District Court for the Southern District of New York has issued supplemental consent orders against former Alameda CEO Caroline Ellison and former Alameda and FTX co-founder Gary Wang. The supplemental orders require both individuals to continue cooperating with the CFTC investigation, impose a five-year trading ban and a ten-year registration ban on Ellison, and impose a five-year trading ban and an eight-year registration ban on Wang, with the bans effective from December 23, 2022, the date the initial consent orders took effect. The CFTC stated that, given the extent of their cooperation in the related investigation and parallel criminal proceedings, as well as their joint criminal restitution order of $11.02 billion, no additional monetary penalties, disgorgement, or civil fines were sought. On December 23, 2022, the court issued initial consent orders against Ellison, finding her liable on two fraud charges in the CFTC’s amended complaint, and against Wang, finding him liable on one fraud charge; both initial orders permanently prohibit them from violating the anti-fraud provisions of the Commodity Exchange Act and CFTC regulations. Both individuals previously pleaded guilty in parallel criminal proceedings to charges including conspiracy to commit commodities fraud. With this, the CFTC’s enforcement actions against Ellison and Wang are now fully resolved. (Source: Foresight News)
CFTC Reaches Settlement with Former Alameda CEO and Co-Founder
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Summary
On August 19 (UTC+8), the U.S. Commodity Futures Trading Commission (CFTC) announced that a federal district court in New York has issued a supplemental consent order against former Alameda CEO Caroline Ellison and co-founder Gary Wang. The order requires continued cooperation in ongoing investigations and imposes a five-year trading ban and a ten-year registration ban on Ellison, and a five-year trading ban and an eight-year registration ban on Wang. These restrictions took effect on December 23, 2022. The CFTC cited their assistance in investigations and criminal proceedings—including a $11.02 billion forfeiture—as grounds for waiving additional penalties. This case may influence future cryptocurrency bans and regulatory actions in liquidity and crypto markets.
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