The SEC has finalized civil settlements with three former senior executives at FTX and Alameda Research.
This ruling officially concludes a crucial part of the regulatory body's lawsuit regarding the collapse of this cryptocurrency exchange.
Sam Bankman-Fried's associates were banned from practicing for 10 years.
According to an announcement released by the SEC on December 18, 2023, the agency has filed a proposed final judgment against Caroline Ellison , former CEO of Alameda Research; Gary Wang , former CTO of FTX; and Nishad Singh , former chief engineer at FTX.
These rulings must be approved by the court before they can take effect.
The SEC confirmed that FTX raised more than $1.8 billion from investors by promoting itself as a secure exchange that protected customer assets well.
Retail investors were also informed that Alameda Research operates like any other client on the platform. However, this is not actually the case.
In fact, FTX secretly favored Alameda . This trading firm was exempt from risk controls and granted a near-unlimited credit line, secured by FTX client deposits.
Thanks to this, Caroline Ellison was able to borrow and lose billions of dollars without facing liquidation of her assets.
Authorities said Wang and Singh developed software code that allowed them to illegally transfer FTX customer funds to Alameda.
Ellison, who runs Alameda, used these funds for trading, startup investments, and loans to leaders such as Sam Bankman-Fried , Wang, and Singh.
These three individuals have agreed to a permanent injunction against engaging in securities fraud under U.S. law, without admitting or denying the charges. Additionally, they have accepted further restrictions on their future professional Vai .
Ellison was banned from holding director or executive positions at publicly traded companies for 10 years.
Wang and Singh both agreed not to hold any director or executive positions for eight years.
All three were also placed under a five-year restraining order, allowing the SEC to intervene swiftly if they violate securities regulations again.
Current penalty status as of December 2025
As of December 2025, Caroline Ellison has been placed under house arrest . She is expected to be released in early 2026.
Gary Wang, former co-founder and CTO of FTX, received a criminal sentence based on time spent in custody thanks to his full cooperation with federal prosecutors. He is currently out on probation.
Nishad Singh, former chief engineer of FTX, also received a criminal sentence based solely on his prior detention and remains on probation.
