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SEC completes FTX executive penalty ruling: three individuals banned from holding management positions, with the longest ban of 10 years
【ChainNews】The U.S. Securities and Exchange Commission recently announced final disciplinary actions against three former executives of FTX and its affiliated entities. This enforcement action marks a significant step forward in the SEC’s handling of cases related to the exchange’s collapse.
Currently, former CEO Sam Bankman-Fried is serving time in federal prison for fraud. Meanwhile, Alameda Research’s former CEO Caroline Ellison, FTX Trading’s former CTO Zixiao Wang, and former FTX Chief Engineer Nishad Singh have agreed to settle with the SEC, with the relevant agreements pending final court approval.
According to the penalty terms, these three individuals will be permanently barred from serving as executives or directors at other companies. Caroline Ellison’s ban will last for 10 years, while the other two will be restricted for 8 years. Additionally, they will be subject to a 5-year “behavioral injunction,” meaning their activities during this period will be strictly regulated.
This case signifies ongoing regulatory efforts to address violations in the crypto industry and reflects the expansion of traditional financial regulatory frameworks into the Web3 space.