With the conviction of Sam Bankman-Fried, the founder of FTX, and his potential decades-long sentence in a federal prison, attention has turned to his former colleagues and co-defendants. Nishad Singh, FTX’s director of engineering; Gary Wang, the exchange’s chief technical officer; and Caroline Ellison, former CEO of FTX sister trading firm Alameda Research, had previously pleaded guilty to fraud and conspiracy charges in December. Their cooperation and testimony were crucial in securing Bankman-Fried’s conviction.

Despite their cooperation, Ellison, Singh, and Wang face the possibility of maximum prison sentences of 110, 75, and 50 years, respectively. As part of their agreement with prosecutors, they will receive 5K motions—letters that describe their criminal conduct and the extent of their assistance to the prosecution. These letters won’t recommend specific sentence lengths, but U.S. District Judge Lewis Kaplan, who will also determine Bankman-Fried’s sentence, will consider them during the sentencing hearing scheduled for March 28, 2024.

The severity of their sentences may be influenced by the amount of money involved in the federal financial fraud cases. The FTX and Alameda scheme was estimated as a $10 billion fraud, which is a significant factor. Legal consultant Christopher Zoukis mentioned that without any departures or mitigating factors, the defendants could be looking at prison terms ranging from 17.5 to 21.8 years. However, given the high public interest in the trial, Kaplan may choose to make an example of Ellison, Singh, and Wang, or he may recognize their assistance in bringing down Bankman-Fried, described as one of the most significant financial fraudsters in American history.

If Ellison, Singh, or Wang were to receive prison sentences, but for less than 12.5 years, they would likely be placed in minimum-security federal prisons, characterized by dorm-style living arrangements and considered non-violent. If they avoid detention, they may still be required to return stolen funds and potentially pay restitution to victims. Legal experts suggest that due to their cooperation, they are likely to receive little to no prison time. All three admitted to participating in fraudulent activities under Bankman-Fried’s direction, involving the transfer of billions of dollars in FTX customer funds to Alameda.