SEC Seeks 10-Year Ban for Ellison, 8 Years for Wang and Singh

Core Viewpoint - The SEC has filed proposed final consent judgments against three former FTX executives, seeking officer-and-director bars due to their involvement in fraudulent activities related to FTX, with varying lengths of prohibitions for each executive [1][2]. Group 1: SEC Actions and Judgments - The SEC's filings in Manhattan federal court formalize settlement terms for Caroline Ellison, Gary Wang, and Nishad Singh, who cooperated with prosecutors during Sam Bankman-Fried's trial but still face permanent securities law injunctions [2]. - Ellison faces a decade-long prohibition, while Wang and Singh are subject to eight-year restrictions [1]. - The proposed judgments require court approval before they can take effect [2]. Group 2: Allegations and Conduct - The SEC's original complaints allege that from May 2019 to November 2022, the executives raised over $1.8 billion from investors through false claims about FTX's safety measures and risk controls [4]. - Bankman-Fried, Wang, and Singh are accused of exempting Alameda Research from automated risk mitigation and granting it unlimited access to customer deposits [4]. - Wang and Singh developed software that diverted FTX customer funds to Alameda, while Ellison directed misappropriated assets toward the hedge fund's trading operations [5]. Group 3: Additional Legal Context - The executives consented to permanent antifraud injunctions under Securities Exchange Act Section 10(b) and Securities Act Section 17(a), along with five-year conduct-based restrictions to prevent similar violations [6]. - Ellison has completed approximately 11 months in federal correctional institution and is now in community confinement, with a projected release set for February 2026 [7].