SEC closes FTX case: penalties for former executives

The US Securities and Exchange Commission (SEC) has officially closed one of the most significant chapters in the history of the FTX crash.

With the formalisation of civil settlements against three former senior executives of FTX and Alameda Research, the regulator puts a final seal on the individual liabilities that led to the platform's collapse in 2022.

The Sanctions: Interdictions and restrictions

In a statement released on 18 December 2025, the SEC announced the filing of proposed final sentences for Caroline Ellison, former CEO of Alameda Research, Gary Wang, former CTO of FTX, and Nishad Singh, former chief engineer of the same company.

SEC.gov | Caroline Ellison, Gary Wang, and Nishad Singh

U.S. Securities and Exchange Commission

The three executives, while neither admitting nor formally denying the allegations, accepted permanent injunctions prohibiting them from any future anti-fraud violations. Specifically:

• Caroline Ellison agreed to a 10-year ban from holding executive or director roles in public companies.
• Gary Wang and Nishad Singh agreed to an 8-year ban from the same positions.

All three will be subject to an additional 5-year conduct injunction, which will allow the SEC to take prompt action if they attempt to improperly re-enter the securities industry.

Caroline Ellison was 'discreetly transferred' from federal prison to a 'community detention' (social confinement) facility after serving 11 months of her two-year sentence; online prison records indicate an early release for February 2026, according to reported by Disclose.tv on X.

The fraud mechanism

According to the SEC, FTX raised over $1.8 billion from investors by presenting itself as a secure platform. In reality, Wang and Singh allegedly manipulated the software code to divert clients' funds to Alameda Research.

Caroline Ellison would then use this capital for high-risk trading, venture capital investments and personal loans to the group's top management, including Sam Bankman-Fried.

Current-status-of-the-protagonists (December 2025)

To date, the three's prison status reflects their cooperation with the justice system:

• Caroline Ellison has been transferred to house arrest and is scheduled for final release in early 2026.
• Gary Wang and Nishad Singh, having received 'time served' sentences due to their extensive cooperation, are currently on probation.