Following the massive collapse of FTX at the end of 2022, they testified against Sam Bankman-Fried in court, stating that they became aware of the exchange’s misconduct shortly before the bankruptcy filing.
Recently, former FTX executive Ryan Salame was sentenced to 7.5 years in prison after pleading guilty to charges of campaign finance violations.
Former Alameda Research CEO Caroline Ellison pleaded guilty along with Wang to seven criminal charges—two counts of wire fraud and five counts of conspiracy. Her sentencing date has not been set.
Wang pleaded guilty to four counts—one count of wire fraud and three counts of conspiracy.
During Bankman-Fried’s trial, Wang testified that he helped develop parts of the FTX website. His most serious admission was revealing a piece of code intended to reflect FTX’s government insurance fund. This indicated that FTX had a reserve for massive withdrawals. According to Wang, this figure was fabricated and had no basis in reality.
He also stated that he discovered an $8 billion hole in FTX’s finances as early as September 2022, but still approved transactions. The last $8 billion of expenses were taken from client funds and spent on real estate investments, venture investments, and campaign donations.
Singh admitted that in 2019 he programmed systems to redirect FTX customer deposits to Alameda’s bank accounts. Additionally, he created systems that gave Alameda special privileges on FTX, such as the ability to withdraw funds beyond their balance and collateral.