Sentencing for ex-FTX execs set for October, November

A federal judge who oversaw the trial of former FTX CEO Sam “SBF” Bankman-Fried has scheduled sentencing hearings for FTX co-founder Gary Wang and former engineering director Nishad Singh.

In a July 9 docket entry in the US District Court for the Southern District of New York, Judge Lewis Kaplan said Singh’s sentencing would be held on Oct. 30, and Wang’s was set for Nov. 20. There was no mention of Caroline Ellison, the former CEO of Alameda Research who testified at SBF’s 2023 trial, at the time of publication.

Wang and Ellison were among the first to plead guilty to charges related to their roles in the collapse of the now-defunct cryptocurrency exchange FTX in 2022. Singh pleaded guilty to multiple felony counts , including fraud and money laundering, in February 2023. The three former executives testified against Bankman-Fried in his criminal trial, which likely contributed to Judge Kaplan sentencing the former CEO to 25 years in prison.

Ex-FTX exec going to prison

Ryan Salame, the former co-CEO of FTX Digital Markets, also pleaded guilty to related charges but largely did not cooperate with authorities, leading to a 90-month sentence imposed by Judge Kaplan. He is scheduled to surrender to authorities on Aug. 29 and, following his sentencing, has resumed posting controversial statements on his X account.

Related: Why was Ryan Salame given a sentence longer than prosecutors recommended?

It’s unclear whether Singh and Wang will receive prison time for their roles in the downfall of FTX, as both men cooperated with US authorities. During SBF’s criminal trial, Wang suggested that he had received a “5K letter” from the government in exchange for his testimony , allowing authorities to consider an “appropriate reduction” to a possible sentence.

Singh said at trial that Bankman-Fried would “unilaterally spend Alameda’s money,” and he “came to distrust” the former CEO. Wang testified that the exchange used hidden code to misrepresent the value of its insurance fund, making it unable to cover user losses. Testimony from both men, Ellison, and other affected parties, likely contributed to SBF’s conviction.

Bankman-Fried remains incarcerated at the Metropolitan Detention Center in Brooklyn as his legal team prepares to appeal his conviction and sentencing. Parties affected by FTX’s collapse have staked different claims to the exchange’s assets as the matter continues to move through bankruptcy court and class-action lawsuits.

Magazine: Could a financial crisis end crypto’s bull run?