- Nishad Singh and Gary Wang to be sentenced for FTX fraud on Oct. 30 and Nov. 20.
- Their cooperation in Sam Bankman-Fried’s trial may lead to reduced sentences.
- Ryan Salame got 90 months for non-cooperation; Bankman-Fried got 25 years.
Former FTX executives Nishad Singh and Gary Wang, key figures in the dramatic collapse of the FTX cryptocurrency exchange, are scheduled to be sentenced later this year.
US District Judge Lewis Kaplan has set Singh’s sentencing for October 30 and Wang’s for November 20.
Both played pivotal roles in the events leading up to and following the downfall of FTX, one of the most high-profile failures in the cryptocurrency industry.
The fall of FTX
FTX, once a leading cryptocurrency exchange, crumbled in 2022 amidst allegations of massive fraud and financial misconduct.
Nishad Singh, the former engineering director, and Gary Wang, FTX co-founder, were instrumental in the company’s operations. Their actions, along with those of other executives, contributed to significant financial losses for users and investors.
Singh and Wang pleaded guilty to multiple felony counts, including fraud and money laundering, with Singh’s guilty plea recorded in February 2023. They have cooperated extensively with US authorities, which might influence their sentencing outcomes.
During the criminal trial of former FTX CEO Sam Bankman-Fried (SBF), their testimonies were crucial.
Singh and Wang’s revelations about the inner workings of FTX and Alameda Research provided valuable insights into the extent of the alleged fraud.
Singh testified that Bankman-Fried had unilateral control over Alameda’s funds and highlighted his growing distrust of the former CEO.
Wang’s testimony shed light on the exchange’s use of hidden code to misrepresent the value of its insurance fund, which failed to cover user losses.
Singh and Wang’s cooperation has led to speculation that they might receive reduced sentences.
Singh and Wang’s testimonies contributed to SBF’s conviction
The testimonies of Singh and Wang, along with that of Caroline Ellison, former CEO of Alameda Research, significantly contributed to the conviction of Sam Bankman-Fried.
Judge Kaplan sentenced Bankman-Fried to 25 years in prison, marking one of the harshest penalties in the cryptocurrency industry to date.
The detailed accounts from Singh and Wang painted a…