Federal court enters supplemental CFTC sanctions against former FTX and Alameda executives

What changed

The U.S. District Court for the Southern District of New York entered supplemental consent orders resolving the CFTC's enforcement actions against former Alameda CEO Caroline Ellison and FTX and Alameda co-founder Gary Wang. The orders require continued cooperation, impose five-year trading bans on both defendants, and impose registration bans of ten years for Ellison and eight years for Wang, measured from their December 2022 initial consent orders. The CFTC is not presently seeking restitution, disgorgement, or civil penalties from them, citing their cooperation and related criminal forfeiture.

Who it affects

• Caroline Ellison and Gary Wang
• CFTC registrants and trading venues responsible for enforcing the ordered bans
• Advisers and clients monitoring recoveries, claims, or residual exposure connected to FTX and Alameda

What is still open

• Any future relief the court or CFTC may consider if cooperation obligations are not satisfied
• How remaining civil, criminal, bankruptcy, and customer-recovery proceedings involving FTX and Alameda will conclude
• The practical recovery available to affected customers and investors

What it means for an advisor

• Update FTX and Alameda matter files to distinguish these final supplemental sanctions from unresolved bankruptcy and recovery proceedings
• Screen relevant registration and market-access workflows for the ordered bans
• Describe the absence of present monetary relief against Ellison and Wang accurately without implying that other defendants, claims, or recovery processes are resolved