Morningstar

Former FTX, Alameda Executives Consent to SEC Final Judgments

Provided by Dow Jones

By Katherine Hamilton 




  Two former FTX executives and the former chief executive officer of Alameda Research, a trading firm related to the currency exchange, consented to final judgments for fraud complaints from the Securities and Exchange Commission. 



  Caroline Ellison, Alameda's former CEO; FTX's former technology chief, Zixiao Wang; and Nishad Singh, the former co-lead engineer of FTX, consented to the entry of final judgments without denying the allegations, the SEC said Friday. 



  The SEC alleged that FTX and founder Sam Bankman-Fried raised more than $1.8 billion from investors by falsely claiming the company was a safe crypto-asset-trading platform. 



  The complaints alleged that the Bankman-Fried, Wang and Singh--with Ellison's knowledge and consent--exempted Alameda from risk-mitigation measures and provided it with a nearly unlimited line of credit funded by FTX customers. 



  The regulator also alleged that Wang and Singh created FTX's software code, which allowed customer funds to be diverted to Alameda, and Ellison used the misappropriated funds for Alameda's trading activity. 



  Wang, Singh and Ellison consented to be permanently enjoined from violating certain U.S. antifraud provisions, and to five-year conduct-based injunctions. 



  Ellison also consented to a bar from being an officer or director for the next 10 years, and Wang and Singh consented to eight-year bars. 





  Write to Katherine Hamilton at katherine.hamilton@wsj.com 





  (END) Dow Jones Newswires



  December 19, 2025 12:54 ET (17:54 GMT)


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