PANews reported on December 20 that, according to Coindesk, the U.S. Securities and Exchange Commission (SEC) has issued a lawsuit notice stating that three former executives of FTX and its affiliates have accepted the SEC's final penalties, and the SEC is handling enforcement cases related to the exchange's collapse.

Former CEO Sam Bankman-Fried remains in federal prison on fraud charges, while executives including former Alameda Research CEO Caroline Ellison have agreed to a settlement, which still requires court approval. Other executives who signed settlement agreements include former FTX Trading CTO Zixiao Wang and former FTX co-chief engineer Nishad Singh.

The SEC stated that the three individuals will be banned from serving as executives or directors at other companies, with Caroline Ellison facing a 10-year ban and the others facing 8-year bans. The agency also stated that they are subject to a five-year "conduct injunction."