FTX executives avoid fines in CFTC settlement over exchange collapse

Investing.com -- Two former executives from collapsed cryptocurrency exchange FTX will not face financial penalties from the US Commodity Futures Trading Commission, the regulator announced today.

Caroline Ellison, former chief executive officer of Alameda Research, will face a five-year trading ban and a 10-year prohibition from registering with the CFTC. Gary Wang, co-founder of FTX, received a five-year trading ban and an eight-year registration prohibition.

The CFTC said it did not pursue monetary penalties or demand the return of illegal profits because of their cooperation in the investigation.

"Today's resolution further underscores the high value this division places on robust cooperation," CFTC Enforcement Director David Miller said in a statement.

The settlement, approved by the court and filed in federal court in Manhattan, relates to the 2022 collapse of FTX. The exchange, led by Sam Bankman-Fried, filed for bankruptcy after prosecutors revealed what they described as a multi-year fraud that took billions of dollars from customers, investors and lenders.

Bankman-Fried is serving 25 years in prison. He attempted to overturn his conviction earlier this year but was unsuccessful.

Both Ellison and Wang pleaded guilty to charges related to the FTX collapse. Ellison was sentenced to two years in prison in 2024. Wang also pleaded guilty but did not receive prison time. Both testified as prosecution witnesses against Bankman-Fried.

In April, the CFTC said former FTX engineering chief Nishad Singh would need to return $3.7 million in illegal profits and face a temporary registration and trading ban.

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