The U.S. Securities and Exchange Commission (SEC) has proposed final consent judgments against Caroline Ellison, the former CEO of Alameda Research; Gary Wang, the former CTO of FTX; and Nishad Singh, the former co-lead engineer of FTX. The three executives were involved in the 2022 collapse of FTX Trading Ltd. and its affiliation with the Alameda Research hedge fund.

The proposed judgments were tabled by the SEC in the U.S. District Court for the Southern District of New York on December 19, 2025. The SEC alleged that from May 2019 to November 2022, FTX and its founder, Samuel Bankman-Fried, raised over $1.8 billion from investors by representing the exchange as a secure crypto asset trading platform with advanced automated risk mitigation techniques to secure customer funds. 

SEC argues that Alameda received preferential treatment from FTX

According to the filing tabled by the SEC with the Court for the Southern District of New York, FTX assured investors that Alameda, owned by Bankman-Fried and Wang, was an ordinary customer with no preferential treatment. SEC complaints revealed that Alameda was actually exempted from risk controls and received a virtually unlimited line of credit financed by FTX customer funds. 

The SEC argued that funds allocated to Alameda were used for Alameda’s trading activities, venture investments, and loans to Bankman-Fried and other executives, including Wang and Singh. The Commission further alleged that Wand and Singh were responsible for developing the software code used to divert customer funds to Alameda, with Ellison utilizing the funds for trading activities. 

Based on the SEC’s argument, the three executives were indeed aware of Bankman-Fried’s actions, allegedly directing additional hundreds of millions in customer funds to Alameda. The three executives, including Ellison, Wang, and Singh, consented to permanent injunctions against violating antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5. 

Without denying the Commission’s allegations, the three executives agreed to five-year conduct-based injunctions. Additionally, Ellison consented to a 10-year ban from serving as an officer or director of public companies, while Wang and Singh each agreed to an eight-year ban. Previously, the three officers faced criminal charges and pleaded guilty to various counts, including fraud and conspiracy to commit fraud. 

The three executives cooperated with the court against Bankman-Fried’s prosecution, which resulted in a 25-year prison sentence for Bankman-Fried on seven criminal counts. Ellison, who was the key witness in the Bankman-Fried case, received a two-year prison sentence, with the option for early release. Wang and Singh, on the other hand, received sentences for time served only. 

Ellison moves to a community confinement program from federal prison

According to a recent Cryptopolitan report, Caroline Ellison, who was considered Sam Bankman-Fried’s girlfriend, has been transferred from federal prison after serving approximately 11 months of her two-year sentence. Ellison was moved on October 16 from Danbury Federal Correctional Institute to a community confinement program. 

As of now, the proposed judgments, led by attorneys from the Enforcement Division of the Cyber and Emerging Technologies unit, conclude the agency’s civil proceedings against individuals connected to the FTX collapse scandal. 

In another related report delivered by Cryptopolitan, a class action lawsuit has also been filed against Silvergate Bank in California, inviting investors connected to FTX or Alameda Research accounts. The lawsuit invites investors who deposited fiat into an FTX or Alameda account between 2019 and 2022 to submit claims for a $10 million settlement filed in the U.S. District Court for the Southern District of California.

Based on the filing, investors have until January 30, 2026, to submit their claims as part of the settlement seeking to resolve the matter on whether Silvergate Bank, Silvergate Capital Corporation, and Alan J. Lane aided and abetted FTX’s fraudulent actions. 

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