The US Securities and Exchange Commission is seeking multi year bans that would prevent former senior executives of Alameda Research and FTX from serving as officers or directors of public companies, marking another step in the regulatory fallout from the collapse of the crypto exchange. The SEC said it has proposed final consent judgments involving former Alameda chief executive Caroline Ellison, former FTX chief technology officer Gary Wang, and former FTX co lead engineer Nishad Singh. Under the proposed terms, Ellison would accept a ten year ban from holding senior leadership roles at public companies, while Wang and Singh would each accept eight year bans. The measures are subject to court approval and form part of broader civil enforcement actions tied to alleged misconduct at the now defunct crypto group.
According to the SEC, the three individuals agreed to the proposed judgments without admitting or denying the agency’s allegations. The settlements would permanently bar them from future violations of key antifraud provisions under US securities law and impose additional conduct based injunctions. Regulators have said the cases stem from their roles in misleading investors and enabling the misuse of customer funds during FTX’s operations. The SEC has previously argued that internal systems and controls at the exchange were designed in ways that allowed affiliated trading firm Alameda Research to access and deploy customer assets improperly. These civil actions run alongside earlier criminal proceedings and reflect the agency’s effort to restrict future access to leadership positions for individuals tied to major financial misconduct.
The proposed bans follow the broader collapse of FTX in late 2022, an event that sent shockwaves through global crypto markets and intensified regulatory scrutiny of digital asset firms. Criminal cases related to the failure have already resulted in sentencing outcomes, including prison terms for some executives and no incarceration for others. The SEC’s latest move underscores its focus on long term accountability beyond financial penalties, aiming to limit the ability of former executives to influence public companies in the future. As enforcement actions continue to work through the courts, the case remains a reference point for how regulators are approaching governance, oversight, and individual responsibility in the digital asset sector.
