Former Alameda Research CEO Caroline Ellison and former FTX executives Gary Wang and Nishad Singh will be barred from taking leadership roles at the company for eight to 10 years after the court ruling.
In a notice on Friday, the US Securities and Exchange Commission he said that he obtained final judgments against Ellison, Wang and Singh for their role in the misappropriation of investor funds in FTX from 2019 to 2022.
Alameda’s former CEO agreed to a 10-year ban from serving as an officer and director, while Wang and Singh agreed to eight years from serving as an officer and director each. All three are also subject to five-year “conduct-based bans,” according to the SEC.
“In reality, as alleged in the complaints, (Sam) Bankman-Fried, Wang and Singh, with Ellison’s knowledge and consent, exempted Alameda from risk mitigation measures and provided Alameda with a virtually unlimited ‘line of credit’ funded by FTX clients,” the SEC said. “The complaints also alleged that Wang and Singh created FTX’s software code that enabled the diversion of FTX’s client funds to Alameda, and that Ellison used misappropriated FTX client funds for Alameda’s trading activity.”
Former FTX CEO Sam “SBF” Bankman-Fried was sentenced to 25 years in prison for his role in the stock market collapse. He is awaiting the results of an appeal to the US Second Circuit Court, where a hearing was held on November 4.
Related: Caroline Ellison accuses Sam Bankman-Fried of misappropriating FTX customer funds at trial
Ellison was sentenced to two years as part of a plea deal in which she testified against Bankman-Fried. Wang and Singh testified against SBF at its criminal trial and were sentenced to prison terms in 2024.
Ellison will soon be released from custody
The former Alameda CEO, who largely stayed out of the public eye between the FTX collapse and her October 2023 SBF trial testimony, was recently transferred from prison to Residential Reentry Management’s New York field office.
According to the Federal Bureau of Prisons, she is scheduled to be released on February 20, about nine months before the end of her two-year sentence. Time suggested she may have been eligible for good behavior credits to reduce her time in prison.
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