The sentencing of former FTX executives Nishad Singh and Gary Wang, who cooperated with prosecutors after pleading guilty, is scheduled to take place in New York later this year in relation to the Sam Bankman-Fried case.
Scheduled Sentencing for FTX Executives
Two former executives of the now-defunct cryptocurrency exchange FTX, Gary Wang and Nishad Singh, are set to face sentencing in New York later this year after cooperating with prosecutors in the case against their former colleague, Sam Bankman-Fried.
Nishad Singh, the former Director of Engineering at FTX, is scheduled for sentencing on October 30. Gary Wang, FTX co-founder and former CTO, will be sentenced on November 20. Both executives have pleaded guilty to multiple federal charges and provided critical testimony against Bankman-Fried.
Singh’s Testimony Reveals FTX’s Internal Operations
Singh, who attended high school with Bankman-Fried, pleaded guilty to four federal charges in February 2023. He testified that Alameda Research, FTX’s affiliated hedge fund, siphoned billions of dollars from the exchange at Bankman-Fried’s direction.
During a conversation in September 2022, Singh confronted Bankman-Fried about Alameda’s inability to repay $13 billion in borrowed funds but was met with a dismissive response. Singh described feeling “blindsided and terrified” by the revelation but continued working at FTX until its collapse.
Wang Reveals Special Privileges for FTX
Wang, who pleaded guilty in December 2022 to four federal charges of fraud and conspiracy, disclosed that he had granted special privileges to Alameda Research that were not available to other FTX customers. These included faster order placements and the ability to withdraw funds despite negative balances. These actions significantly contributed to the $8 billion shortfall that led to FTX’s downfall.
Potential Plea Deals and Cooperation
Both Singh and Wang face potential decades in prison. However, their cooperation with the government is expected to lead to substantial sentence reductions. Braden Perry, a former federal law enforcement attorney, noted that a potential 5k1.1 motion from the government would recommend a sentence reduction due to their assistance in the case against Bankman-Fried.
Ryan Salame, another former associate of Bankman-Fried, recently received a harsher 7.5-year prison sentence, as he did not testify against Bankman-Fried. Federal Judge Lewis Kaplan, who oversees all related cases, imposed a slightly higher sentence for Salame than the government’s recommendation due to his limited cooperation.
Given their early guilty pleas and significant contributions as witnesses, Singh and Wang are expected to receive more lenient sentences. However, the severity of their crimes means that substantial prison terms remain possible.
Disclaimer: This article is provided for informational purposes only. It is not intended to be used as legal, tax, investment, financial, or other advice.