Onchain Week: Former FTX and Alameda Executives Hit With Five-Year Trading Bans

Former Alameda Research CEO Caroline Ellison and FTX co-founder Zixiao “Gary” Wang have received five year trading bans following consent orders entered by the US District Court for the Southern District of New York, tied to a 2022 enforcement action related to FTX’s collapse.

CFTC Sanctions and Cooperation Credit

The Commodity Futures Trading Commission also imposed a 10-year registration ban on Ellison and an eight-year ban on Wang. CFTC enforcement director David Miller said the orders reflected their cooperation with the agency’s FTX-related investigations. This civil case remains separate from the criminal proceedings, where Ellison received a two-year prison sentence and Wang was given time served.

US Soldier’s Polymarket Insider Trading Case Continues

Separately, federal prosecutors filed opposition to a motion to dismiss charges against Gannon Ken Van Dyke, a US soldier accused of earning over $400,000 through nonpublic information tied to the military operation that removed Venezuelan leader Nicolás Maduro. The government argued his claims rely on speculative assertions inappropriate for this stage of litigation. No ruling has been issued yet.

$165 Million Crypto Ponzi Indictment Unsealed

A Georgia judge unsealed a 25-count indictment against Edward Zimbardi, accused of running a $165 million crypto Ponzi scheme after being deported from Fiji. Prosecutors are seeking forfeiture of seized crypto assets worth roughly $6 million.