In the latest development surrounding the collapse of the cryptocurrency exchange FTX, former executives Nishad Singh and Gary Wang are set to face sentencing. U.S. District Judge Lewis Kaplan, who presided over the trial of former FTX CEO Sam “SBF” Bankman-Fried, has scheduled the hearings for Singh and Wang. Singh will be sentenced on October 30, while Wang’s hearing is set for November 20.
Early Guilty Pleas and Testimonies
Both Wang and Caroline Ellison, the former CEO of Alameda Research, were among the first to plead guilty to charges related to their roles in FTX’s downfall in 2022. Singh followed suit in February 2023, pleading guilty to multiple felony counts, including fraud and money laundering. Their testimonies played a significant role in the trial of Bankman-Fried, leading to his conviction and a 25-year prison sentence.
Cooperation with Authorities
Wang and Singh’s cooperation with U.S. authorities might influence their sentencing. During the trial, Wang mentioned receiving a “5K letter” from the government, which could result in a reduced sentence in exchange for his cooperation. Singh, in his testimony, revealed that Bankman-Fried would unilaterally spend Alameda’s funds, leading to Singh’s growing distrust of the former CEO. Wang also disclosed that FTX used hidden code to misrepresent its insurance fund’s value, compromising its ability to cover user losses.
SDNY docket. Source: PACER
Other Executives and Legal Proceedings
Ryan Salame, the former co-CEO of FTX Digital Markets, also pleaded guilty but did not cooperate with authorities. This led to a 90-month sentence. He is scheduled to surrender to authorities on August 29. Following his sentencing, Salame has continued to make controversial statements on his social media account.
Future Legal Battles
Bankman-Fried remains incarcerated at the Metropolitan Detention Center in Brooklyn as his legal team prepares to appeal his conviction and sentence. Meanwhile, FTX’s collapse continues to be a matter of contention in bankruptcy court and class-action lawsuits, with various parties staking claims to the exchange’s remaining assets.
The sentencing of Singh and Wang will be closely watched as it marks another chapter in the ongoing saga of FTX’s dramatic fall from grace.
