The Commodity Futures Trading Commission has resolved its civil enforcement actions against Caroline Ellison, former CEO of Alameda Research, and Gary Wang, co-founder of both Alameda Research and FTX. Both consented to liability judgments for fraud tied to FTX’s collapse, during which more than $8 billion in customer deposits were allegedly misappropriated through Alameda Research. In August 2024, the same federal court issued a consent order against FTX Trading Ltd. and Alameda Research LLC imposing $12.7 billion in total monetary relief, the largest recovery in CFTC history, including $8.7 billion in restitution and $4 billion in disgorgement. Ellison and Wang had both entered guilty pleas in parallel criminal proceedings in December 2022 and cooperated extensively with federal prosecutors, which influenced their sentences: Ellison received a two-year prison term while Wang avoided incarceration entirely. These settlements formally conclude the individual civil cases tied to one of the largest financial collapses in crypto history.
Source: Read the original article
