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Ellison and Wang face trading bans in CFTC settlement
The CFTC said it pursued no monetary penalties or clawbacks after the pair cooperated with the investigation.
FTX co-founder Gary Wang and former Alameda Research CEO Caroline Ellison reached a court-approved settlement with the US Commodity Futures Trading Commission, resulting in multi year trading and registration bans tied to their roles in the crypto exchange's 2022 collapse, according to Bloomberg via Yahoo Finance.
Ellison will be banned from trading for five years and barred from registering with the CFTC for 10 years. Wang faces a five-year trading ban and an eight-year prohibition on registering with the regulator.
The CFTC said it did not seek monetary penalties or a return of ill gotten profits, citing the value placed on cooperation, as stated by Enforcement Director David Miller.
The settlement stems from FTXs bankruptcy after what prosecutors described as a yearslong fraud that bilked billions of dollars from customers, investors and lenders. Sam Bankman-Fried is serving 25 years in prison, while Ellison pleaded guilty and was sentenced to two years in 2024, and Wang pleaded guilty and avoided serving prison time.