The Commodity Futures Trading Commission terminated its direct actions against former FTX executives Caroline Ellison and Gary Wang by closing its civil enforcement complaints. Both were banned from trading for five years after being found guilty of fraud. Wang was banned from registering for 8 years, while Ellison was banned for 10. Citing their significant cooperation with its FTX-related investigations and ongoing client recovery efforts, the CFTC did not impose any new financial penalties.

CFTC Ends Civil Cases With Trading Bans

The U.S. District Court for the Southern District of New York issued further consent orders against Wang, a co-founder of FTX and Alameda, and Ellison, the former CEO of Alameda Research, on August 19, 2026. Both are subject to five-year trading prohibitions and must continue to cooperate with the CFTC, according to the orders.

Wang was banned from registering with the CFTC for 8 years, while Ellison was banned for an extra 10. The prohibitions are effective as of December 2022, the date of the first consent orders. According to the order, both are subject to five-year trading prohibitions and must continue to cooperate with the CFTC.

Wang was banned from registering with the CFTC for eight years, while Ellison was banned for an extra 10. The prohibitions are effective as of December 2022, the date of the first consent orders.

The CFTC's enforcement actions against Ellison and Wang are resolved by the new orders as well as the initial ones. Both were permanently barred from breaking CFTC regulations and the Commodity Exchange Act's antifraud provisions by the initial orders.

In the most recent resolution, the government did not impose any new financial penalties. According to CFTC Enforcement Director David I. Miller, Ellison and Wang's "material assistance" to the Commission's FTX investigations was reflected in the penalty.

.@CFTC Resolves Actions Against Former Alameda CEO, and Alameda and FTX Co-Founder: https://t.co/csj2ODxJ5T

— CFTC (@CFTC) August 19, 2026

What Ellison & Wang Were Found Liable For

On December 21, 2022, the CFTC first added Ellison and Wang to its fraud investigation against Sam Bankman-Fried, FTX, and Alameda. The government claimed that over $8 billion in FTX customer deposits were lost as a result of the scam.

The CFTC asserts that Wang added features to FTX's trading platform software that gave Alameda a virtually limitless credit line. Alameda was apparently able to evade FTX's typical auto-liquidation system and perform deals more quickly thanks to additional exclusions.

Despite not having enough money, Alameda was able to take out billions of dollars in client assets due to these hidden features. The agreement, according to the CFTC, gave Alameda an unfair advantage that neither the public nor FTX clients were informed of.

Ellison was charged with overseeing the use of billions of dollars in FTX finances, including client assets, after taking over as Alameda's co-CEO in October 2021 and then as its sole CEO. The money was invested in high-risk industries and traded on various digital asset exchanges.

Additionally, the CFTC said that Ellison maintained the fraudulent scheme by making false public claims on the purported split between FTX and Alameda.

Their Cooperation Changed the Final Sanctions

In the CFTC lawsuit, neither Ellison nor Wang disputed their culpability. In accordance with CFTC Regulation 180.1 and Section 6(c)(1) of the Commodity Exchange Act, both parties consented to consent orders admitting liability for fraud.

The final sanctions were determined in large part by their collaboration. In particular, the CFTC emphasised the support they offered throughout its investigations into FTX.

The resolution comes after the first consent orders that were signed on December 13, 2022. According to those rulings, Wang was held accountable for the one fraud allegation against him, while Ellison was deemed accountable for the two fraud counts made against her.

Thus, the most recent conduct does not absolve them of guilt. Rather, it keeps their cooperation obligations in place while legally concluding the CFTC's civil enforcement procedures.

They also had separate criminal cases. In the Southern District of New York, both entered guilty pleas to commodities fraud and other crimes on December 19, 2022. Wang was sentenced to time served, while Ellison was imprisoned for approximately 11 months. On December 20, 2022, each was independently accused of securities fraud by the Securities and Exchange Commission.

The FTX Case & Customer Recovery Continue

The charges that the CFTC is pursuing against Ellison and Wang span at least May 2019 through November 11, 2022. Both FTX.com and Alameda remained under Bankman-Fried's control during that time, despite FTX's reputation as a secure platform that kept client assets safe and apart from business money.

The reality, according to the CFTC, was different. Alameda received, retained, and mixed customer assets with its own money. Bankman-Fried, Ellison, and Wang were charged with taking part in a scam that exploited client monies for high-risk, illiquid digital asset investments, political contributions, luxury real estate purchases, and Alameda trading.

Additionally, the agency said that FTX staff members developed a "allow negative" functionality and other code exceptions at Bankman-Fried's request, allowing Alameda to access customer assets without sufficient funding.

Ellison and Wang are still required to cooperate even if the CFTC's direct civil lawsuits against them have been settled. In its previous enforcement action, the government sought permanent bans on trade and registration, restitution, disgorgement, civil monetary penalties, and permanent injunctions against future violations.

The CFTC also cautioned that because defendants might not have enough money or assets, rulings ordering wrongdoers to compensate victims do not always ensure complete restitution. The FBI, the SEC, the Securities Commission of the Bahamas, and the U.S. Attorney's Office for the Southern District of New York collaborated in their investigation.

As a result, the most recent ruling puts an end to one aspect of the FTX enforcement story, i.e., Ellison and Wang are nonetheless accountable for their actions, will be subject to protracted trading and registration limitations, and will continue to support the CFTC in its efforts to recover customers.

If you find any issues in this article or notice missing information, please feel free to reach out at team@etherworld.co for clarifications or updates.

To promote your Web3 articles, events, and projects, you may reach out anytime via EtherWorld PR for submissions and collaboration.

Related Articles

1. Harmony ONE Token Crashes After $4B Unauthorized Mint
2. ZachXBT Exposes Alleged $5M Crypto Scam
3. Crypto User Loses $100K to Address Poisoning Scam
4. What the COLDCARD Exploit Means for Crypto?
5. Carrot Shuts Down After Drift Exploit Fallout

To follow blockchain news, track Ethereum protocol progress, and read our latest stories, subscribe to our weekly today.

Join the EtherWorld & Avarch Internship Program and build your career in blockchain, content, social media, video, podcast editing, or operations. Send your resume and brief introduction to contact@etherworld.co.