Sentencing for former FTX executives Nishad Singh and Gary Wang, who cooperated with prosecutors after pleading guilty, will take place in New York later this year in connection with the Sam Bankman-Fried case.
Sentencing Scheduled For FTX Execs
Two former executives of the now-defunct FTX exchange, Gary Wang and Nishad Singh, will 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’s co-founder and former CTO, will be sentenced on November 20. Both executives have pleaded guilty to multiple federal counts and have provided crucial testimony against Bankman-Fried.
Singh’s Testimony Reveals FTX's Inner Workings
Singh, who attended high school with Bankman-Fried, pleaded guilty to four federal counts in February 2023. He testified that Alameda Research, FTX’s affiliated hedge fund, misappropriated billions of dollars from the exchange at Bankman-Fried’s behest.
During a conversation in September 2022, Singh confronted Bankman-Fried about Alameda's inability to repay $13 billion in borrowed funds, only to be met with a dismissive response. Singh described feeling "blindsided and horrified" by the revelation but continued working at FTX until its collapse.
Wang Discloses Special Privileges For FTX
Wang, who pleaded guilty in December 2022 to four federal counts of fraud and conspiracy, disclosed that he had implemented special privileges for Alameda Research that were not available to other FTX customers. These included faster order placements and the ability to withdraw funds despite a negative balance. These actions significantly contributed to the $8 billion shortfall that led to FTX's downfall.
Potential Sentences and Cooperation
Both Singh and Wang face the possibility of decades in prison. However, their cooperation with the government is expected to result in substantial sentence reductions. Braden Perry, a former federal enforcement attorney, indicated that a likely 5k1.1 motion from the government would recommend a reduced sentence 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 is overseeing all related cases, opted for a sentence slightly above the government’s recommendation for Salame due to his limited cooperation.
Given their early guilty pleas and significant contributions as witnesses, Singh and Wang are anticipated to receive more lenient sentences. Nevertheless, the severity of their offenses means that substantial prison terms remain a possibility.
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