According to Foresight News , citing CoinDesk, the U.S. Securities and Exchange Commission (SEC) has reached a settlement agreement with three former executives involved in the FTX collapse. Former Alameda Research CEO Caroline Ellison will be banned from serving as an executive or director of any company for 10 years, while former FTX Trading CTO Gary Wang and former FTX co-chief engineer Nishad Singh face similar bans for eight years. All three will also be subject to a five-year "behavior-based injunction."
The SEC alleges that Sam Bankman-Fried, Gary Wang, and Nishad Singh, with Ellison's informed consent, exempted Alameda from risk mitigation measures and provided it with a virtually unlimited "line of credit" backed by FTX client funds. Wang and Singh created FTX software code that allowed client funds to be transferred to Alameda, which Ellison then used for trading activities.
