SEC confirms years-long director bans for former Alameda, FTX executives

Former Alameda Analysis CEO Caroline Ellison and former FTX executives Gary Wang and Nishad Singh might be barred from assuming firm management roles for eight to 10 years following a courtroom judgment.

In a Friday discover, the US Securities and Change Fee mentioned that it had obtained last consent judgments towards Ellison, Wang and Singh for his or her roles within the misuse of investor funds at FTX from 2019 to 2022. 

The previous Alameda CEO consented to a 10-year officer-and-director bar, whereas Wang and Singh consented to eight-year officer-and-director bars every. All three are additionally topic to five-year ”conduct-based injunctions,” in response to the SEC.

“In actuality, as alleged within the complaints, [Sam] Bankman-Fried, Wang, and Singh, with Ellison’s information and consent, had exempted Alameda from the danger mitigation measures and supplied Alameda with a just about limitless ‘line of credit score’ funded by FTX’s clients,” mentioned the SEC. “The complaints additionally alleged that Wang and Singh created FTX’s software program code that allowed FTX buyer funds to be diverted to Alameda, and that Ellison used misappropriated FTX buyer funds for Alameda’s buying and selling exercise.”

Former FTX CEO Sam “SBF” Bankman-Fried obtained a 25-year sentence for his function within the change’s collapse. He’s awaiting the outcomes of an enchantment within the US Courtroom of Appeals for the Second Circuit, the place a listening to was held on Nov. 4.

Associated: Caroline Ellison blames Sam Bankman-Fried for misuse of FTX person funds at trial

Ellison was sentenced to 2 years as a part of a plea deal through which she testified towards Bankman-Fried. Wang and Singh testified towards SBF at his felony trial and had been sentenced to time served in 2024.