The implosion of FTX or the infamous FTX Fraud, in late 2022 was a watershed moment in the cryptocurrency world, with the exchange’s founder, Sam Bankman-Fried, at the center of the controversy. Nishad Singh, the former Director of Engineering, and Gary Wang, the former Chief Technology Officer, were both integral members of the FTX executive team and played pivotal roles in the company’s downfall.
Nishad Singh, a close confidant of Bankman-Fried, was deeply involved in the fraudulent activities that led to FTX’s collapse. In February 2023, Singh pleaded guilty to six criminal charges, including fraud and conspiracy. During Bankman-Fried’s trial, Singh testified that he had programmed systems in 2019 to divert FTX customer deposits to Alameda bank accounts, the trading firm owned by Bankman-Fried. Singh also admitted to building out systems that gave Alameda “special privileges” that other FTX customers did not have, including the “allow negative” feature that enabled Alameda to withdraw funds in excess of its balance and collateral.
Similarly, Gary Wang, the former Chief Technology Officer of FTX, has also been implicated in the company’s downfall. Wang pleaded guilty to conspiracy to commit wire fraud, conspiracy to commit securities fraud, conspiracy to commit commodities fraud, and wire fraud. During Bankman-Fried’s trial, Wang testified that he had helped develop parts of FTX’s website, including a piece of code designed to reflect FTX’s “public insurance fund.” However, Wang admitted that this figure was essentially made up and had nothing to do with the actual contents of the insurance fund, a revelation that further undermined the credibility of FTX’s operations.
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Nishad Singh’s Sentencing
Nishad Singh’s sentencing hearing is scheduled for October 30th, 2023. Prosecutors are expected to ask the presiding judge, U.S. District Judge Lewis Kaplan, to take Singh’s cooperation into account when determining his punishment. During his testimony, Singh expressed his hope for “no jail time,” a sentiment that will likely be a key consideration in the sentencing decision.
Gary Wang’s Sentencing
Gary Wang’s sentencing hearing is set for November 20th, 2023. Like Singh, Wang’s cooperation with the authorities and his testimony against Bankman-Fried are expected to be factors in the judge’s decision. Wang has stated that he cooperated with the FBI “because it seemed like the right thing to do” and to avoid incarceration.
