FTX: The SEC prohibits Caroline Ellison for 10 years and her associates for 8 years
16:30 ▪ 4 min read
The FTX-Alameda scandal has entered a new phase following a significant decision by the SEC. For the first time, the U.S. regulator has taken a firm stance, imposing sanctions of 8 to 10 years on the former executives involved in one of the largest financial frauds in the history of cryptocurrencies. However, will these sanctions be enough to restore confidence in a sector still affected by impunity?
In brief
The SEC has officially banned Caroline Ellison from serving for 10 years, and Gary Wang and Nishad Singh for 8 years, due to their role in the FTX scandal.
Caroline Ellison will benefit from an early release in February 2026 due to her cooperation with the judicial system, while Sam Bankman-Fried is serving a 25-year sentence.
Affected investors will not be reimbursed at the current Bitcoin price, but rather according to its value at the time of bankruptcy, exacerbating their financial losses.
Cryptocurrencies: The SEC confirms the ban on Alameda executives
The SEC has officially prohibited Caroline Ellison, Gary Wang, and Nishad Singh from serving as directors or being part of boards for eight to ten years. This unprecedented measure in the world of cryptocurrencies aims to protect investors following the collapse of FTX and the disappearance of billions of dollars. These bans send a clear message: the era of impunity is over.
However, some question the real effectiveness of these measures. The sentences, although severe, remain largely symbolic for those involved in one of the largest cryptocurrency frauds in history.
$CA
