TechFlow, Dec 20 — According to CoinDesk, the U.S. Securities and Exchange Commission (SEC) announced on December 20 that it has reached settlement agreements with three former executives in the collapsed FTX case.
Per the consent judgments, former Alameda Research CEO Caroline Ellison will be barred for 10 years from serving as an officer or director of any company, while former FTX Trading CTO Gary Wang and former FTX co-lead engineer Nishad Singh will face similar 8-year bans. All three will also be subject to a 5-year "conduct-based injunction."
The SEC alleged that Sam Bankman-Fried, Wang, and Singh, with Ellison’s knowledge and consent, waived risk mitigation controls for Alameda and provided it with an almost unlimited "line of credit" funded by FTX customer assets. Software code created by Wang and Singh enabled the transfer of customer funds to Alameda, and Ellison used the misappropriated customer funds for trading activities.
The settlements are reported to still require court approval.
