Former FTX Execs to Be Sentenced

Former FTX Execs to Be Sentenced

LawFraud

By Jakub Lazurek

10 Jul 2024 (15 days ago)

3 min read

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Two former FTX executives, Nishad Singh and Gary Wang, will be sentenced this fall after pleading guilty and cooperating with authorities in the FTX scandal.

Two ex-FTX executives, Nishad Singh and Gary Wang, who admitted guilt and cooperated with the authorities, will be sentenced in New York this fall. Singh, the former Director of Engineering, and Wang, the former Chief Technology Officer, will receive their sentences on October 30, 2024, and November 20, 2024, respectively. This comes nearly a year after the trial of FTX founder Sam Bankman-Fried.

Nishad Singh, a high school friend of Bankman-Fried, pleaded guilty to four federal charges in February 2023. Singh testified that Alameda Research took billions from FTX under Bankman-Fried’s orders. Singh admitted being intimidated by Bankman-Fried but noted that this fear diminished over time.

Gary Wang, who pleaded guilty to fraud and conspiracy in December 2022, also testified against Bankman-Fried. Wang revealed he gave Alameda Research special advantages, allowing faster order placements than other FTX customers. This led to an $8 billion shortfall that contributed to FTX’s collapse in 2022.

This update comes about six weeks after Ryan Salame, another former FTX associate, was sentenced to 7.5 years in prison. Salame pleaded guilty to campaign finance violations and operating an unlicensed money-transmitting business. Unlike Singh and Wang, Salame did not testify against Bankman-Fried. Judge Lewis Kaplan, overseeing these cases, sentenced Salame slightly above the government’s recommendation of five to seven years.

Salame's minimal cooperation led to a harsher sentence. In contrast, Singh and Wang’s extensive cooperation is expected to result in more lenient sentences, although they still face significant prison time.

Given their cooperation, Nishad Singh and Gary Wang might receive lighter sentences. Their testimonies were crucial in detailing Bankman-Fried's actions and the fraudulent activities at FTX and Alameda Research. Their accounts helped establish the extent of the fraud, aiding the jury’s understanding.

Caroline Ellison, former CEO of Alameda Research, has not yet been scheduled for sentencing. Ellison pleaded guilty to seven federal charges, with a maximum sentence of 110 years. Her cooperation and testimony against Bankman-Fried will likely influence her sentencing, similar to Singh and Wang.

The sentencing of these former executives is a key moment in the fallout from FTX's collapse. Their cooperation has been vital in revealing the complexities of the fraud led by Bankman-Fried. As legal proceedings continue, attention will focus on their cooperation and resulting sentences.

The upcoming sentences for Nishad Singh and Gary Wang highlight the legal consequences for those involved in the FTX scandal. Their testimonies have illuminated the internal operations of FTX and Alameda Research, contributing to the broader understanding of the fraud. With Ryan Salame already sentenced and Caroline Ellison’s sentencing pending, these outcomes will shape the narrative of one of the most significant financial collapses in recent history.

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