Former FTX executives Caroline Ellison and Gary Wang agreed to settlements with the US derivatives regulator that bar them from trading and restrict their ability to work in the industry.
The Commodity Futures Trading Commission barred Ellison from trading for five years and from registering with the agency for 10 years. Wang received five-year and eight-year restrictions, respectively. The penalties add to the fallout from FTX’s 2022 collapse and the criminal cases involving its former executives.
Cooperation Cuts Penalties
The CFTC did not seek fines or repayment of profits, citing Ellison’s and Wang’s cooperation. “Today’s resolution further underscores the high value this division places on robust cooperation,” Enforcement Director David Miller said.
Related: OCC Targets November for GENIUS Act Stablecoin Rules
FTX collapsed in 2022, leaving customers with billions of dollars in losses. Founder Sam Bankman-Fried was later convicted of fraud and sentenced to prison. Ellison pleaded guilty and served 14 months of a two-year sentence, while Wang pleaded guilty and received time served.
CFTC Broadens Its Focus
The CFTC has also taken action against other former FTX executives. Nishad Singh previously faced a $3.7 million repayment order and temporary restrictions.
The agency is also examining derivatives tied to computing capacity. “America cannot win the AI race without a robust derivatives market for compute,” Chairman Michael S. Selig said.
The move reflects the CFTC’s expanding focus beyond crypto as it develops markets tied to rising demand for computing power.
Related: If the FBI Knows the Coldcard Hacker, Why Haven’t the Bitcoins Been Recovered?
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