Former FTX Executives Will Be Found Guilty By Year’s End After Exchange Crash Crisis

Key Points:

• Former FTX executives Nishad Singh and Gary Wang will be sentenced in October and November after pleading guilty to fraud.
• They testified about major fraud at FTX, including misusing customer funds and creating false financial assurances.
• Sam Bankman-Fried received 25 years for embezzling $8 billion; other former FTX executives also face legal consequences.

Sentencing hearings have been set for two former FTX executives Nishad Singh and Gary Wang.

Sentencing Dates Set for Former FTX Executives

According to court records, Nishad Singh will be sentenced on October 30, and Gary Wang will face sentencing on November 20 in Manhattan federal court. Both individuals have pleaded guilty to fraud and have cooperated with prosecutors, providing key testimony against FTX founder Sam Bankman-Fried.

The collapse of FTX in late 2022 sent shockwaves through the cryptocurrency industry. Singh and Wang’s testimony during Bankman-Fried’s trial revealed that they were aware of significant wrongdoing at the exchange shortly before it filed for bankruptcy.

Singh admitted to programming systems in 2019 that diverted FTX customer deposits to Alameda Research, a related trading firm. He also disclosed the creation of systems that granted Alameda special privileges, allowing it to withdraw funds beyond its balance and collateral. Wang, who helped develop parts of FTX’s website, identified a code designed to falsely reflect a public insurance fund intended to reassure investors.

In February 2023, Singh pleaded guilty to six criminal charges, including fraud and conspiracy. He revealed that by September 2022, he discovered an $8 billion deficit in FTX’s finances but continued to authorize transactions involving misappropriated customer funds. Wang pleaded guilty to four charges, including wire fraud and conspiracy to commit securities fraud.

Sam Bankman-Fried and Associates Face Severe Legal Consequences

Another former FTX executive, Ryan Salame, was sentenced to 7.5 years in prison for campaign finance charges but did not testify against Bankman-Fried. Former Alameda Research CEO Caroline Ellison also pleaded guilty but has not yet been sentenced.

Sam Bankman-Fried was sentenced to 25 years in prison in March after being convicted of embezzling $8 billion from FTX customers. The prosecutors are expected to urge Judge Lewis Kaplan to consider Singh’s and Wang’s cooperation when deciding their sentences. The ongoing legal fallout from FTX’s collapse continues to expose the vast extent of fraud and mismanagement at the exchange.