Two former FTX executives, Nishad Singh and Gary Wang, will be sentenced in New York this fall. Singh, a former Director of Engineering, pleaded guilty to four federal charges in February 2023, testifying that Alameda Research took billions from FTX under Bankman-Fried’s orders.
Wang, a former Chief Technology Officer, pleaded guilty to fraud and conspiracy in December 2022, testifying against Bankman-Fried. He revealed he gave Alameda Research special advantages, leading to an $8 billion shortfall that contributed to FTX’s collapse in 2022.
This update comes six weeks after Ryan Salame, another former FTX associate, was sentenced to 7.5 years in prison for campaign finance violations and operating an unlicensed money-transmitting business.
Salame’s minimal cooperation led to a harsher sentence, while Singh and Wang’s extensive cooperation is expected to result in more lenient sentences, although they still face significant prison time.
Similar to Singh and Wang, Caroline Ellison, former CEO of Alameda Research, has not yet been scheduled for sentencing. Her cooperation and testimony against Bankman-Fried will likely influence her sentencing, similar to Singh and Wang.
The sentencing of these former executives is a key moment in the fallout from FTX’s collapse, as their cooperation has been vital in revealing the complexities of the fraud led by Bankman-Fried.
Bankman-Fried family is also embroiled in a $100 million financial scandal, which revolves around the misuse of commercial assets of the exchange for the purpose of making political contributions.
