The Commodity Futures Trading Commission has closed its last fraud case against Caroline Ellison and Gary Wang, the two former FTX insiders who cooperated with prosecutors. Supplemental consent orders entered in a New York federal court impose trading and registration bans but no new fines, resolving the case that opened weeks after FTX collapsed in November 2022.
The Bans and Their Timelines
Ellison received a five-year trading ban and a ten-year registration ban. Wang got a five-year trading ban and an eight-year registration ban. Both bans run from December 2022, so Ellison can trade again in late 2027, while Wang's registration bar ends in 2030 and Ellison's in 2032.
The CFTC waived restitution, disgorgement, and civil fines because of the pair's extensive cooperation and their existing $11.02 billion forfeiture from criminal cases. David I. Miller, the CFTC's director of enforcement, said the resolution underscores the high value placed on robust cooperation.
The Original Case and the Code
The CFTC first sued Sam Bankman-Fried, FTX, and Alameda Research in December 2022, accusing them of misusing more than $8 billion in FTX customer deposits. Wang wrote the code that allowed Alameda to quietly drain FTX customer funds. FTX and Alameda settled with the CFTC for $12.7 billion in 2024.
The SEC also imposed long-term leadership bans without new fines: Ellison got ten years, Wang got eight years.
Criminal Sentences and SBF's Fate
Ellison served 14 months of a two-year sentence and left prison in January. Wang received a sentence of time served in November 2024, citing his help. Bankman-Fried is serving 25 years; an appeals court upheld his conviction in June, and the appeal mandate issued on August 4 made it final. He can petition the Supreme Court or hope for a presidential pardon. Bipartisan senators have introduced a resolution opposing any clemency for him.
The FTX estate's wind-down is almost complete, with only one final claim dispute remaining.
