Former FTX Executives Face Sentencing: Cooperation May Lead to Leniency

Blockonomi · 2024-07-10T09:59:40.000Z

TLDR Former FTX executives Nishad Singh and Gary Wang are scheduled for sentencing later this year Singh’s sentencing is set for October 30, while Wang’s is scheduled for November 20 Both pleaded guilty to multiple felony counts and testified against Sam Bankman-Fried in his criminal trial Caroline Ellison, former CEO of Alameda Research, does not yet have a scheduled sentencing date Singh and Wang provided crucial testimony about FTX’s misuse of customer funds and hidden code Both could face decades in prison, but are likely to receive reduced sentences due to their cooperation The legal aftermath of the FTX cryptocurrency exchange collapse continues to unfold as two key former executives, Nishad Singh and Gary Wang, are scheduled for sentencing later this year. U.S. District Court Judge Lewis Kaplan, who presided over Sam Bankman-Fried’s trial, has set the sentencing dates for Singh on October 30 and Wang on November 20, 2024. Singh, FTX’s former Director of Engineering, and Wang, the exchange’s co-founder and former Chief Technology Officer, both played pivotal roles in the criminal case against Bankman-Fried. Their guilty pleas and subsequent testimony were instrumental in the conviction of the former FTX CEO, who was sentenced to 25 years in prison for his role in one of the largest financial frauds in U.S. history. The upcoming sentencings mark a significant milestone in the FTX saga, as they will determine the fates of two executives who were deeply involved in the exchange’s operations but chose to cooperate with authorities. Singh pleaded guilty to six criminal charges including fraud and conspiracy in February 2023, while Wang admitted to four charges, including wire fraud and conspiracy counts, in December 2022. During Bankman-Fried’s trial, both Singh and Wang provided damaging testimony about the inner workings of FTX and its sister company, Alameda Research. Singh revealed that he discovered an $8 billion hole in FTX’s finances around September 2022, just months before the exchange’s collapse. He also admitted to programming systems that routed customer deposits to Alameda’s bank accounts and gave the trading firm special privileges on the FTX platform. Wang’s testimony was equally crucial, as he identified a piece of code designed to misrepresent FTX’s “public insurance fund,” a figure meant to reassure investors about the exchange’s stability. He stated that this figure was essentially fabricated and had no relation to the actual funds available. The cooperation of Singh and Wang with federal authorities is likely to play a significant role in their sentencing. Braden Perry, a partner at Kennyhertz Perry and former federal enforcement attorney, told The Block, “Cooperators will likely receive a heavy reduction in their sentence.” This reduction is typically based on a “5k1.1 motion” from the government, which requests a decrease in sentence due to substantial assistance in investigating or prosecuting other criminals. Perry added, “In the white-collar first-time offender status, both Singh and Wang will likely see a minimal term of imprisonment.” However, the exact sentences will depend on the extent of their assistance and the final guideline sentence based on the Presentence Investigation Report (PSR) used by the judge. It’s worth noting that while Singh and Wang have sentencing dates, Caroline Ellison, the former CEO of Alameda Research who also testified against Bankman-Fried, does not yet have a scheduled sentencing date. Ellison pleaded guilty to seven criminal charges, including wire fraud and conspiracy charges. The sentencing of these former executives comes in the wake of another FTX-related sentencing. Ryan Salame, former co-CEO of FTX Digital Markets, was recently sentenced to 7.5 years in prison after pleading guilty to campaign finance charges. Unlike Singh and Wang, Salame did not testify against Bankman-Fried, which may have contributed to his longer sentence. The post Former FTX Executives Face Sentencing: Cooperation May Lead to Leniency appeared first on Blockonomi.

TLDR
Mantan eksekutif FTX Nishad Singh dan Gary Wang dijadwalkan akan dijatuhi hukuman akhir tahun ini
Hukuman terhadap Singh ditetapkan pada 30 Oktober, sedangkan hukuman Wang dijadwalkan pada 20 November
Keduanya mengaku bersalah atas berbagai tuduhan kejahatan dan bersaksi melawan Sam Bankman-Fried dalam persidangan pidananya
Caroline Ellison, mantan CEO Alameda Research, belum mengetahui jadwal hukumannya
Singh dan Wang memberikan kesaksian penting tentang penyalahgunaan dana pelanggan dan kode tersembunyi oleh FTX
Keduanya bisa menghadapi hukuman puluhan tahun penjara, namun kemungkinan akan menerima pengurangan hukuman karena kerja sama mereka
Akibat hukum dari keruntuhan bursa mata uang kripto FTX terus terungkap ketika dua mantan eksekutif utama, Nishad Singh dan Gary Wang, dijadwalkan untuk dijatuhi hukuman akhir tahun ini.
Hakim Pengadilan Negeri AS Lewis Kaplan, yang memimpin persidangan Sam Bankman-Fried, telah menetapkan tanggal hukuman bagi Singh pada 30 Oktober dan Wang pada 20 November 2024.
Singh, mantan Direktur Teknik FTX, dan Wang, salah satu pendiri bursa dan mantan Chief Technology Officer, keduanya memainkan peran penting dalam kasus pidana terhadap Bankman-Fried.
Pengakuan bersalah mereka dan kesaksian selanjutnya berperan penting dalam hukuman terhadap mantan CEO FTX, yang dijatuhi hukuman 25 tahun penjara karena perannya dalam salah satu penipuan keuangan terbesar dalam sejarah AS.
Hukuman yang akan datang menandai tonggak penting dalam kisah FTX, karena hukuman tersebut akan menentukan nasib dua eksekutif yang sangat terlibat dalam operasi bursa tetapi memilih untuk bekerja sama dengan pihak berwenang.
Singh mengaku bersalah atas enam dakwaan pidana termasuk penipuan dan konspirasi pada Februari 2023, sementara Wang mengakui empat dakwaan, termasuk penipuan kawat dan konspirasi, pada Desember 2022.
Selama persidangan Bankman-Fried, baik Singh maupun Wang memberikan kesaksian yang merugikan tentang cara kerja FTX dan perusahaan kembarnya, Alameda Research. Singh mengungkapkan bahwa dia menemukan lubang $8 miliar dalam keuangan FTX sekitar September 2022, hanya beberapa bulan sebelum bursa tersebut runtuh.
Dia juga mengakui sistem pemrograman yang mengarahkan simpanan pelanggan ke rekening bank Alameda dan memberikan hak istimewa khusus kepada perusahaan perdagangan tersebut di platform FTX.
Kesaksian Wang juga sama pentingnya, karena ia mengidentifikasi sepotong kode yang dirancang untuk salah menggambarkan “dana asuransi publik” FTX, sebuah angka yang dimaksudkan untuk meyakinkan investor tentang stabilitas bursa. Ia menyatakan, angka tersebut pada dasarnya dibuat-buat dan tidak ada hubungannya dengan dana sebenarnya yang tersedia.
Kerja sama Singh dan Wang dengan otoritas federal kemungkinan besar akan memainkan peran penting dalam hukuman mereka. Braden Perry, partner di Kennyhertz Perry dan mantan pengacara penegakan federal, mengatakan kepada The Block,
“Koperator kemungkinan akan menerima pengurangan hukuman yang besar.”
Pengurangan ini biasanya didasarkan pada “mosi 5k1.1” dari pemerintah, yang meminta pengurangan hukuman karena adanya bantuan besar dalam menyelidiki atau mengadili penjahat lainnya.
Perry menambahkan, “Dalam status pelaku kerah putih pertama kali, baik Singh maupun Wang kemungkinan akan mendapatkan hukuman penjara minimal.” Namun hukuman pastinya akan tergantung pada sejauh mana bantuan mereka dan pedoman hukuman akhir berdasarkan Laporan Investigasi Kehadiran (PSR) yang digunakan hakim.
Perlu dicatat bahwa meskipun Singh dan Wang telah memiliki tanggal hukuman, Caroline Ellison, mantan CEO Alameda Research yang juga bersaksi melawan Bankman-Fried, belum memiliki tanggal hukuman yang dijadwalkan. Ellison mengaku bersalah atas tujuh tuntutan pidana, termasuk penipuan kawat dan tuduhan konspirasi.
Hukuman terhadap mantan eksekutif ini terjadi setelah hukuman terkait FTX lainnya.
Ryan Salame, mantan co-CEO FTX Digital Markets, baru-baru ini dijatuhi hukuman 7,5 tahun penjara setelah mengaku bersalah atas tuduhan dana kampanye. Berbeda dengan Singh dan Wang, Salame tidak memberikan kesaksian melawan Bankman-Fried, yang mungkin menyebabkan hukumannya lebih lama.
Pos Mantan Eksekutif FTX Menghadapi Hukuman: Kerja Sama Dapat Menghasilkan Kelonggaran muncul pertama kali di Blockonomi.

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