The SEC has completed civil settlements with three former senior executives at FTX and Alameda Research.
This ruling officially concludes an important part of the regulatory agency's lawsuit related to the collapse of this cryptocurrency exchange.
Sam Bankman-Fried's associates are banned from operating for 10 years.
According to a notice released by the SEC on December 18, 2023, the agency has submitted a proposal for a final judgment involving Caroline Ellison – former CEO of Alameda Research, Gary Wang – former CTO of FTX, and Nishad Singh – former chief engineer at FTX.
These rulings are still pending approval by the court before they take effect.
The SEC confirmed that FTX raised over 1.8 billion USD from investors by promoting itself as a safe exchange that protects customer assets well.
Retail investors were also informed that Alameda Research operated like any other customer on the exchange. However, this was not the reality.
In fact, FTX secretly favored Alameda. This trading firm was not required to adhere to risk controls and was granted an almost unlimited credit line, secured by FTX customer deposits.
As a result, Caroline Ellison was able to borrow and lose billions of USD without liquidation of assets.
The regulatory agency reported that Wang and Singh built software that allowed the transfer of FTX customers' money to Alameda unlawfully.
Ellison, who ran Alameda, used these funds for trading purposes, startup investments, and loaned to executives like Sam Bankman-Fried, Wang, and Singh.
These three individuals have agreed to a permanent ban on securities fraud under U.S. law without admitting or denying the allegations. Additionally, they accept further restrictions on their professional roles in the future.
Ellison is banned from serving as a director or executive at a public company for 10 years.
Wang and Singh both agreed not to hold director or executive positions for 8 years.
All three individuals also face a 5-year ban on activities, allowing the SEC to intervene quickly if they re-offend in the securities field.
Current sanction status as of December 2025
As of December 2025, Caroline Ellison has been moved to house arrest. She is expected to be released in early 2026.
Gary Wang, former co-founder and CTO of FTX, has received a criminal sentence based on time served due to full cooperation with federal prosecutors. He is currently being released under supervision.
Nishad Singh, former chief engineer of FTX, also received a criminal sentence only counting time served previously and is still under supervision.
