Caroline Ellison, Gary Wang, and Nishad Singh to Receive Lifetime Antifraud Bans as Part of SEC Settlement Agreement

SEC's Proposed Judgments: The U.S. SEC has submitted proposed final consent judgments against Caroline Ellison, Gary Wang, and Nishad Singh, seeking permanent antifraud injunctions and leadership bans related to the FTX collapse, with Ellison facing a 10-year bar and Wang and Singh each facing eight-year bars, pending court approval.

Cooperation and Admissions: All three defendants were early cooperating witnesses in the federal cases, with Ellison admitting to misusing customer funds, Wang acknowledging his role in enabling Alameda's access to those funds, and Singh confessing to implementing features that facilitated Alameda's trading privileges.

SEC's Allegations: The SEC alleges that the trio helped raise over $1.8 billion from investors while concealing Alameda's preferential access to FTX customer funds and risk exemptions, with Wang and Singh creating software that diverted customer funds to Alameda.

Next Steps in Legal Process: The proposed judgments are awaiting approval from Judge James R. Cho in the Southern District of New York, which would formalize significant regulatory penalties related to the FTX downfall.