Public Statements & Remarks

Statement of Commissioner Summer K. Mersinger Regarding the Consent Orders of Judgment on Liability against Defendants Caroline Ellison and Zixiao “Gary” Wang

December 21, 2022

Today, the Commission filed an Amended Complaint[1] to add Defendants Caroline Ellison (“Ellison”) and Zixiao “Gary” Wang (“Wang”) to the Complaint against Samuel Bankman-Fried (“Bankman-Fried”), Alameda Research LLC (“Alameda”), FTX Trading Ltd. d/b/a (“FTX Trading”) and various subsidiaries, affiliates and related entities, collectively doing business as “” or simply “FTX”.[2] nbsp;Both Wang and Ellison played critical roles in perpetrating an international fraudulent scheme that caused the loss of over $8 billion in FTX customer deposits[3]

I commend the hardworking men and women of our Enforcement Division for moving with great urgency and doggedness in pursuing these wrongdoers. I am grateful to our civil and criminal partners for working in parallel with the Commission to ensure justice is done. These cooperative enforcement efforts have enhanced the impact of our enforcement program and its deterrent effect.

Ellison and Wang must accept responsibility for their deceitful acts as set forth in the Amended Complaint and consent orders. The enormity of the financial losses and blatant fraudulent misconduct warrants the imposition of significant sanctions and meaningful injunctive relief when the damages aspect of the case against Ellison and Wang is resolved. I will continue to advocate for the Commission to be tireless as we pursue all those who played a role in this fraudulent scheme.

I also remind the public to take great care if they trade their hard-earned money in cash or “spot” transactions on commodity digital asset trading platforms. The CFTC does not regulate Bitcoin or any other cash or “spot” digital asset transactions, and market participants on these platforms do not have the same protections as those who trade on derivatives markets regulated by the CFTC.

[1] See, CFTC Charges Alameda CEO and Alameda and FTX Co-Founder with Fraud in Action Against Sam Bankman-Fried and his Companies, CFTC Press Release No. 8644-22.

[2] See, CFTC Charges Sam Bankman-Fried, FTX Trading and Alameda with Fraud and Material Misrepresentations, CFTC Press Release No. 8638-22.

[3] Id.