SEC Pursues Long-Term Bans for Ex-FTX Executives

SEC's Proposed Bans: The U.S. SEC is seeking long-term bans for three former FTX executives, with Caroline Ellison facing a 10-year ban, while Gary Wang and Nishad Singh each face 8-year bans from serving in public company leadership roles.

Allegations of Fraud: The SEC alleges that the executives were involved in a scheme to defraud investors by misusing customer funds, diverting assets to Alameda Research for personal and trading activities.

Criminal Proceedings Context: These civil actions follow criminal sentences for the executives, with Ellison receiving two years in prison and Wang and Singh getting time served, highlighting their cooperation with prosecutors.

Next Steps for the Proposed Judgments: The proposed consent judgments require federal court approval to take effect, which would enforce the bans and injunctions, emphasizing accountability for misconduct in the crypto industry.