Caroline Ellison and Gary Wang have avoided new financial penalties from the Commodity Futures Trading Commission (CFTC) as the regulator closes its civil cases against two of the most prominent former executives from Sam Bankman-Fried’s FTX empire.
- Caroline Ellison and Gary Wang have avoided new financial penalties from the Commodity Futures Trading Commission (CFTC) as the regulator closes its civil cases against two of the most prominent former executives from Sam Bankman-Fried's FTX empire.
- Because those bans run from the date of the original consent orders, Dec. 23, 2022, they are already more than three years into the restrictions and are scheduled to expire in December 2027.
- But the terms also show what cooperation can mean in a sprawling financial fraud case: liability remains, restrictions remain and criminal consequences remain, while regulators can choose not to add another layer of financial punishment when a defendant's assistance has substantial investigative value.
The U.S. District Court for the Southern District of New York entered supplemental consent orders on Wednesday resolving the CFTC‘s enforcement actions against Ellison, the former chief executive of Alameda Research, and Wang, an FTX and Alameda co-founder. The commission said it was not seeking additional restitution, disgorgement or civil monetary penalties from either executive.
That does not mean the two escaped liability.
The court had already found Ellison liable on both fraud counts in the CFTC’s amended complaint and Wang liable on the single fraud count against him in December 2022. Those original orders also permanently barred both from violating the Commodity Exchange Act’s antifraud provisions.
The new resolution instead closes the remaining civil actions while preserving substantial restrictions on both former executives.
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→ Submit a Press ReleaseWhat Ellison And Wang Still Face
Both Ellison and Wang received five-year trading bans under the supplemental orders. Because those bans run from the date of the original consent orders, Dec. 23, 2022, they are already more than three years into the restrictions and are scheduled to expire in December 2027.
Ellison also received a 10-year ban on registering with the CFTC. Wang received an eight-year registration ban. Both must continue cooperating with the commission.
The financial distinction is more significant. The CFTC said it was not seeking additional restitution, disgorgement or civil monetary penalties “at this time,” pointing to the level of cooperation provided by both executives in its investigation and related proceedings.
The commission also pointed to an existing $11.02 billion forfeiture order in the parallel criminal cases, for which Ellison and Wang are jointly and severally liable.
Why Their Cooperation Mattered
The decision reflects how much prosecutors and regulators relied on former members of Bankman-Fried’s inner circle after FTX collapsed.
Ellison pleaded guilty in December 2022 and became a central witness against Bankman-Fried. Prosecutors said she met with the government roughly 20 times and provided evidence about how FTX customer funds were diverted to Alameda. She testified for three days during Bankman-Fried’s trial, helping prosecutors establish how the fraud operated and who directed it.
Wang also pleaded guilty and testified against his former boss. Prosecutors said his cooperation helped investigators understand the software changes that gave Alameda special privileges on FTX and allowed it to withdraw billions of dollars from the exchange.
The CFTC made that cooperation central to its decision.
“Ellison and Wang were senior executives who committed fraud at Alameda and FTX for which they were found liable,” the agency’s enforcement director said. Their sanctions, he added, reflected their “material assistance” in the commission’s FTX-related investigations.
The Criminal Cases Were Separate
The CFTC resolution does not erase the criminal consequences that Ellison and Wang already faced.
Ellison was sentenced to two years in federal prison in September 2024 after pleading guilty to fraud and conspiracy charges. Prosecutors had urged leniency because of her extensive cooperation, while stressing the seriousness of her role in the fraud.
Wang was sentenced in November 2024 to time served. His cooperation was also a major factor in the government’s request for leniency. Prosecutors had said his assistance helped the government move rapidly against Bankman-Fried after FTX collapsed.
Bankman-Fried, by contrast, was convicted on seven fraud and conspiracy counts and sentenced to 25 years in prison. Ellison, Wang and another former FTX executive, Nishad Singh, testified against him after pleading guilty.
The CFTC’s final action therefore closes one legal track for two executives who played important roles in the FTX collapse. But the terms also show what cooperation can mean in a sprawling financial fraud case: liability remains, restrictions remain and criminal consequences remain, while regulators can choose not to add another layer of financial punishment when a defendant’s assistance has substantial investigative value.
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