Former FTX Director of Engineering Nishad Singh and former Chief Technology Officer Gary Wang are scheduled to be sentenced this fall in the ongoing criminal case against the global crypto exchange, FTX, which collapsed in late 2022.
Singh and Wang, who both pleaded guilty to criminal charges, testified against FTX co-founder and former CEO Sam Bankman-Fried. They revealed that they became aware of misconduct at the exchange shortly before it declared bankruptcy. Another former FTX executive, Ryan Salame, recently received a 7.5-year prison sentence after pleading guilty to campaign finance charges. Salame did not testify against Bankman-Fried.
Singh’s sentencing is set for October 30, in the District Court for the Southern District of New York, while Wang will be sentenced a few weeks later on November 20. Former Alameda Research CEO Caroline Ellison, who pleaded guilty alongside Wang, is awaiting a sentencing date. Ellison pleaded guilty to wire fraud and conspiracy charges, while Wang pleaded guilty to wire fraud, securities fraud, and conspiracy charges.
In February, Singh admitted to several charges, including fraud and conspiracy. He acknowledged discovering an $8 billion deficit in FTX’s finances in September 2022 but still approved transactions funded by customer assets. He revealed that customer deposits were directed to Alameda bank accounts, and unique privileges were granted to Alameda, such as the ability to withdraw funds exceeding their balance.
Wang, who pleaded guilty to wire fraud and various conspiracy charges, admitted to assisting in developing FTX’s website. He disclosed that a key code related to FTX’s public insurance fund was misleading, as the displayed figure did not reflect the actual fund reserves. Wang cooperated with the FBI to avoid imprisonment, emphasizing that it was the right decision to make.
During their testimonies, both Singh and Wang expressed hopes of avoiding jail time. The case sheds light on the importance of transparency and ethical practices in the cryptocurrency industry, underlining the consequences of fraudulent activities within exchanges.