Ex-FTX Executives Nishad Singh and Gary Wang to be Sentenced This Fall

Later this year, two former high-ranking officials of the bankrupt bitcoin exchange FTX are scheduled to be sentenced. On October 30 and November 20, respectively, former Chief Technology Officer Gary Wang and Director of Engineering Nishad Singh will be jailed.

This comes after they confessed against their former employer, Sam Bankman-Fried, and entered guilty pleas to several criminal offences.

Former FTX execs Nishad Singh and Gary Wang will face sentencing later this year https://t.co/AEVFIcNITr

— The Block (@TheBlock__) July 9, 2024

In late 2022, FTX, a significant member of the cryptocurrency market, had a sharp decline. Singh and Wang acknowledged that they were aware of the company’s deceptive behaviour just before it filed for bankruptcy. The conviction of Bankman-Fried, the founder and former CEO of FTX, was largely dependent on their statements.

After joining FTX in 2019, Nishad Singh entered a guilty plea in February 2023 for six criminal offences, including conspiracy and fraud. In September 2022, Singh disclosed during Bankman-Fried’s trial in October 2023.

Also he had found an $8 billion deficit in FTX’s assets. He however gave his approval to transactions using client funds.

Additionally, Singh acknowledged writing code that directed FTX client deposits to Bankman-Fried’s trading company, Alameda Research. Alameda was granted privileged access to the FTX platform through these systems.

Co-founder of FTX Gary Wang entered a guilty plea to four criminal counts, including several counts of conspiracy and wire fraud. Wang acknowledged contributing to the creation of certain pages on the FTX website.

Like a section of code meant to deceive users about the exchange’s “public insurance fund.” Although this fund was largely a fabrication, it was intended to reassure investors of FTX’s financial health.

Singh and Wang have said that they are hoping for a light sentence. Wang claimed that he worked with the FBI because it was morally correct to do so and because it might help him escape going to jail. In a similar vein, Singh stated throughout his testimony that he hoped for no jail time.

Their sentence takes place in the midst of a larger court drama involving other important FTX executives. Another former executive, Ryan Salame, received a 7.5-year prison sentence for his involvement in the scam.

Former FTX Exec Ryan Salame Gets 7.5 Years In Prisonhttps://t.co/BMdjW6WsuT pic.twitter.com/8AziquQnmh

— Forbes (@Forbes) May 28, 2024

Salame entered a guilty plea to claims of running an unregistered money-transmitting firm and engaging in campaign finance fraud. Salame did not testify against Bankman-Fried, in contrast to Singh and Wang.

Significant problems in the cryptocurrency space have been brought to light by the FTX case. That has also raised concerns about cryptocurrency exchanges. As a next step in resolving the impact of one of the largest financial scandals in recent memory, Singh and Wang’s sentencing will be widely monitored.