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SEC Files Final FTX Settlements Seeking 10-Year Bar for Ellison, 8-Year Bars for Wang and Singh

The proposed orders would close the regulator’s civil FTX cases over alleged diversion of customer funds.

Overview

  • The SEC submitted proposed final consent judgments in the Southern District of New York on Dec. 19, pending court approval.
  • Ellison agreed to a 10-year officer-and-director bar, while Wang and Singh accepted eight-year bars, alongside five-year conduct-based injunctions.
  • The settlements also impose permanent antifraud injunctions under Exchange Act Section 10(b) and Rule 10b-5, and Securities Act Section 17(a).
  • The three executives consented without admitting the SEC’s allegations following cooperation in criminal cases that led to sentences including time served and supervised release.
  • SEC complaints say FTX gave Alameda special privileges, including a virtually unlimited customer-funded credit line enabled by code, after raising more than $1.8 billion from investors under false assurances about risk controls.