Former Alameda Research CEO Caroline Ellison has been hit with a decade-long ban from serving as an officer or director of any public company, marking the SEC's final enforcement action against Sam Bankman-Fried's closest associates. The settlement comes as regulators wrap up their pursuit of the key figures behind one of cryptocurrency's most spectacular implosions.
The Securities and Exchange Commission has imposed its final penalties on the inner circle of FTX's collapsed empire, with Caroline Ellison receiving a 10-year ban from holding executive positions at publicly traded companies. The former Alameda Research CEO joins other top lieutenants of disgraced FTX founder Sam Bankman-Fried in facing career-defining consequences for their roles in the exchange's multibillion-dollar fraud.
Ellison, who previously led the trading firm that served as FTX's sister company, had already been sentenced to two years in prison after cooperating extensively with federal prosecutors. Her testimony proved instrumental in securing Bankman-Fried's conviction on fraud and conspiracy charges, which resulted in his 25-year prison sentence. The SEC's officer and director ban represents an additional layer of professional consequences that will extend well beyond her criminal sentence.
The regulatory action effectively closes the chapter on enforcement efforts targeting FTX's leadership team. Other executives who faced similar SEC settlements include former engineering chief Nishad Singh and co-founder Gary Wang, both of whom also cooperated with authorities. These individuals played critical roles in the scheme that diverted billions in customer funds from FTX to Alameda Research for risky investments and personal expenses.
The FTX collapse in November 2022 sent shockwaves through the cryptocurrency industry, wiping out an estimated $8 billion in customer assets and triggering a broader crisis of confidence in digital asset platforms. The exchange, once valued at $32 billion, crumbled in a matter of days after questions emerged about its financial relationship with Alameda Research.
While the SEC's enforcement actions provide a measure of accountability, thousands of FTX customers continue to navigate bankruptcy proceedings to recover their lost funds. Recent developments in the bankruptcy case have shown some promise for creditor recovery, though many remain frustrated by the lengthy process and potential losses.
The 10-year ban ensures that Ellison, now 30, will be well into her 40s before she could legally serve in a corporate leadership role at a public company, effectively reshaping the trajectory of what was once considered a promising career in quantitative trading and cryptocurrency.