In the latest developments concerning the FTX situation, the SEC has disclosed that Caroline Ellison has agreed to a decade-long ban from holding any directorial roles in companies.

Specifically, former executives Gary Wang and Nishad Singh have been subjected to bans of eight years each. This decision stems from a court ruling regarding their misuse of investor resources at FTX from 2019 to 2022.

All three individuals will face five-year conduct-based restrictions as per the SEC’s announcement.

“In reality, as alleged in the complaints, [Sam] Bankman-Fried, Wang, and Singh, with Ellison’s knowledge and consent, had exempted Alameda from the risk mitigation measures and provided Alameda with a virtually unlimited ‘line of credit’ funded by FTX’s customers,” remarked the SEC.
“The complaints also alleged that Wang and Singh created FTX’s software code that allowed FTX customer funds to be diverted to Alameda, and that Ellison used misappropriated FTX customer funds for Alameda’s trading activity.”

The regulatory body has issued a confirmation that both Wang and Singh testified against Bankman-Fried. Currently, Bankman-Fried is serving a 25-year sentence for his actions leading to the downfall of FTX and is presently awaiting his appeal in the Second Circuit.

Ellison will soon be transitioning from custody to a management office in New York City, with her release expected around February 20, ahead of her two-year sentence’s completion. Her potential early release suggests eligibility for good conduct credits.