CFTC enters supplemental orders against Ellison and Wang in FTX case
A federal court entered supplemental consent orders in the CFTC cases against Caroline Ellison and Gary Wang, adding cooperation duties and extending trading and registration bans.
A federal court in New York has entered supplemental consent orders in the Commodity Futures Trading Commission’s enforcement cases against Caroline Ellison and Gary Wang, adding cooperation obligations and extending trading and registration bans tied to the FTX collapse.
According to the CFTC, the U.S. District Court for the Southern District of New York entered the supplemental orders against Ellison, described as former Alameda CEO, and Wang, described as former Alameda and FTX co-founder. Both must continue cooperating with the commission.
What the orders say
The agency said Ellison received a five-year trading ban and a 10-year registration ban, while Wang received a five-year trading ban and an eight-year registration ban. The bans run from the date of the initial consent orders.
The CFTC said its initial consent order against Ellison was entered on Dec. 23, 2022. That order found her liable on both fraud counts in the agency’s amended complaint and permanently barred her from violating antifraud provisions of the Commodity Exchange Act and commission regulations.
The same day, the court entered an initial consent order against Wang, finding him liable on the single fraud count charged against him. That order also permanently enjoined him from violating antifraud provisions of the Commodity Exchange Act and commission rules.
Why it matters
The supplemental orders resolve the CFTC’s enforcement actions against Ellison and Wang, the agency said. They also leave the commission without restitution, disgorgement or civil monetary penalties at this time.
The CFTC said that decision reflects, in part, the pair’s cooperation in the agency’s investigation and related proceedings, including parallel criminal cases in the Southern District of New York.
What the CFTC said
Director of Enforcement David I. Miller said the resolution “underscores the value the Division places on robust cooperation,” according to the release.
Miller said Ellison and Wang were senior executives who committed fraud at Alameda and FTX and that their sanctions reflect their material assistance in the commission’s FTX-related investigations.
Background and next steps
The release cites the related criminal matters as United States v. Ellison and United States v. Wang, both listed as Crim. No. 22-cr-673 (S.D.N.Y. 2022). It says Ellison and Wang each pled guilty to several criminal charges, including conspiracy to commit commodities fraud.
The release also references an $11.020 billion forfeiture order in the criminal actions, for which the two were jointly and severally liable.
The CFTC said the supplemental and initial consent orders together resolve its enforcement actions against Ellison and Wang.
Sources
Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.
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