The US CFTC's two co-founders against FTX: Ellison and Wang have both been banned from trading for 5 years and have not sought refunds or civil fines
Comparatively, the US Commodity Futures Trading Commission (CFTC) recently disclosed that the US District Court for the Southern District of New York has issued supplementary consent orders against former Alameda Research CEO Caroline Ellison and Gary Wang, co-founder of Alameda and FTX to formally resolve the CFTC's enforcement case against the two. According to the court order, both Ellison and Wang are required to continue to cooperate with the CFTC investigation. Ellison was given a 5-year trading ban and a 10-year registration ban, and Wang was given a 5-year trading ban and an 8-year registration ban. The relevant ban period is calculated from the effective date of the initial consent order that the two previously signed on December 23, 2022. In 2022, the court found Ellison involved and was responsible for two cases of fraud alleged by the CFTC, and also found Wang responsible for one fraud charge and permanently banned the two from violating the Commodity Exchange Act and CFTC's relevant anti-fraud regulations. Notably, the CFTC is not seeking additional recovery, return of illegal proceeds, or civil fines against Ellison and Wang at this time. CFTC law enforcement said the decision was based in part on significant cooperation between the two in the investigation and related litigation, including pleading guilty in a federal criminal case and assisting in the investigation of FTX-related matters. CFTC law enforcement chief David I. Miller said that Ellison and Wang committed fraud as Alameda and FTX senior executives and were found responsible by the court, but the final penalty reflected the important assistance they provided to the CFTC investigation. Furthermore, in related criminal cases, both have pleaded guilty to multiple crimes, including conspiring to commit commodity fraud, and are jointly liable for a forfeiture order of approximately $11.02 billion. This consent order means that the CFTC's relevant enforcement actions against Ellison and Wang have officially come to an end.


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