FTX Executives Face SEC Bans in Landmark Crypto Enforcement Action

In a landmark enforcement action that underscores the U.S. Securities and Exchange Commission's (SEC) intensified regulatory scrutiny of the cryptocurrency industry, former Alameda Research CEO Caroline Ellison and FTX executives Gary Wang and Nishad Singh have been barred from holding public company roles. The sanctions, announced in December 2025, stem from the SEC's allegations of a multiyear scheme to defraud investors by misrepresenting the risk management and financial health of the collapsed crypto exchange FTX. According to court filings, the executives are accused of granting Alameda Research, FTX's affiliated trading firm, undisclosed and preferential advantages on the platform, including a secret line of credit funded with customer assets, while publicly touting FTX's sophisticated risk controls. This case represents one of the most significant regulatory actions following the November 2022 collapse of FTX, highlighting the SEC's focus on holding key individuals accountable for corporate misconduct in the digital asset space. The settlement, which includes Ellison agreeing to a 10-year ban from serving as an officer or director of a public company, signals a clear warning to the industry about the severe personal and professional consequences of violating securities laws, even as the broader crypto market continues to evolve and mature.

SEC Bars FTX Execs and Alameda CEO From Public Roles in Landmark Crypto Sanctions

The U.S. Securities and Exchange Commission has imposed sweeping sanctions against Caroline Ellison, former CEO of Alameda Research, and FTX executives Gary Wang and Nishad Singh. The regulator alleges they participated in a multiyear scheme to defraud investors by misrepresenting FTX’s risk controls while granting Alameda undisclosed trading advantages.

Court filings reveal Ellison agreed to a 10-year ban from public company roles. The SEC claims FTX raised $1.8 billion between 2019-2022 by falsely portraying its platform as secure and Alameda as just another customer. Instead, executives allegedly exempted the hedge fund from key safeguards.

This marks the SEC’s most aggressive enforcement action against crypto leadership since FTX’s collapse. The case underscores growing regulatory scrutiny of exchange operations and affiliated trading firms.