SEC Seeks Officer-and-Director Bans for Former FTX Executives in Sam Bankman-Fried Trial
The U.S. Securities and Exchange Commission (SEC) has proposed officer-and-director bans for three former FTX executives tied to the Sam Bankman-Fried trial. Caroline Ellison, former Alameda Research CEO, faces a 10-year ban, while Gary Wang, former FTX CTO, and Nishad Singh, former FTX co-lead engineer, face 8-year bans.
The proposed final consent judgments include permanent antifraud injunctions and five-year conduct-based restrictions, which require court approval before taking effect. All three defendants consented to the final judgments without admitting or denying the SEC's allegations.
According to the SEC, from 2019 to 2022, over $1.8 billion was raised through fundraising efforts that involved false claims about safety and risk controls. Alameda Research was exempted from automated risk controls and was given unlimited access to customer deposits.
The SEC alleges that Gary Wang and Nishad Singh wrote software to divert customer funds to Alameda Research. Caroline Ellison directed the use of these misappropriated assets to Alameda’s trading operations. Meanwhile, Sam Bankman-Fried directed funds intended for investments and personal loans to executives.
These actions form part of the regulatory effort connected to the ongoing legal proceedings against the former FTX executives and founders.
