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The SEC has finalized civil settlements against three former senior executives at FTX and Alameda Research.
This ruling officially closes a major chapter in the case of the regulator related to the collapse of the cryptocurrency exchange.
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Sam Bankman-Fried associates receive decade-long disorder
in declaration Released on December 18, the SEC said it had filed a final proposal for approval against Carolyn Ellisonformer CEO of Alameda Research, And Gary Wangformer CTO of FTX, And Nishad Singhformer associate engineer at FTX.
The provisions are subject to court approval.
The SEC confirms that FTX has raised more From $1.8 billion from investors Portraying itself as a secure trading platform with strong protection of client assets.
Investors are also informed that Alameda Research operates like any other client on the stock exchange. But those statements were wrong.
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In reality, FTX Alameda was secretly granted special privileges. The trading company was exempted from risk controls and granted a subsidized, almost unlimited line of credit FTX Customer Deposits.
This allowed Caroline Ellison to borrow and lose billions without facing liquidation.
The regulator says that Wang and Seng created the software code That allowed the transfer of customer funds from FTX to Alameda.
So use it Ellisonwho managed Alameda, used that money in trade, investment investments and loans to leaders, including them. Sam Bankman-FriedWang and Singh.
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Without admitting or denying the charges, all three executives agreed to permanent injunctions barring them from violating key anti-fraud provisions of US securities law. They also accepted additional restrictions on their future professional roles.
Ellison agreed 10 year ban To work as an officer or director in a public company.
Wang and Sing agreed Ban for 8 years as officers and directors.
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Even subject to all three For behavioral based injunctions for 5 yearswhich allow the SEC to act quickly if they return to improper securities-related activities.
The current status of the sentence is until December 2025
From December 2025, Caroline Ellison was transported to home confinement. It is expected to be released in early 2026.
Gary Wang, former CTO and co-founder of FTX, received a criminal sentence with time served after extensive cooperation with federal prosecutors. He is currently on supervised release.
Nishad Singh, a former associate engineer at FTX, also received a lengthy criminal sentence and remains on supervised release.
