NEW YORK, Friday, July 12, 2024 – Former executives of the collapsed cryptocurrency exchange FTX will face sentencing hearings later this year, according to a court order issued on Tuesday.
On May 28, Former FTX executive Ryan Salame was sentenced to 90 months in prison for conspiring to make unlawful political contributions, defraud the Federal Election Commission, and operate an unlicensed money transmitting business.
Nishad Singh, FTX’s former director of engineering, is scheduled for sentencing on October 30th. Gary Wang, FTX’s co-founder and former chief technology officer, will be sentenced on November 20th.
Both Singh and Wang pleaded guilty to fraud charges in Manhattan federal court in February 2023.
Their cooperation with prosecutors during the trial of FTX founder Sam Bankman-Fried is expected to be a key factor in determining their sentences. Singh and Wang reportedly testified about their awareness of alleged wrongdoings at FTX shortly before the exchange filed for bankruptcy in late 2022.
The sentencing dates come after Bankman-Fried himself was sentenced to 25 years in prison in March 2024.
He was convicted on multiple counts of wire fraud and conspiracy related to the collapse of FTX, which caused billions of dollars in losses for investors.
Prosecutors are likely to seek a lighter sentence for Singh and Wang due to their cooperation. However, the specific details of their plea agreements and the extent of their cooperation remain under seal.
The sentencing hearings for Singh and Wang are expected to provide further details on the inner workings of FTX and the events leading to its downfall.
This information could be crucial for ongoing investigations into the broader cryptocurrency industry.
Salame worked with FTX and Alameda Research executives to advance FTX’s interests through illegal means. Salame’s actions included making over 300 unlawful political contributions.
In addition to his prison term, he was sentenced to three years of supervised release and ordered to pay over $11 million in forfeiture and restitution.
