A soldier found guilty of lesser charges in connection with the death of Army Private Danny Chen was formerly sentenced Tuesday.
Sergeant Adam Holcomb will be demoted to specialist and will serve 30 days in jail.
He had faced two-and-a-half years behind bars after being convicted of assault and maltreatment by a military jury at Fort Bragg in North Carolina.
Holcomb was acquitted of more serious charges including negligent homicide, reckless endangerment and hazing.
"Justice was served. He did say, I mean, he was wrong. You shouldn't but it's combat, and I've never been through it, like, none of us have. And we don't know what happens," said Holcomb's brother, Patrick. "We're glad that justice was served and he gets to stay in the military, cause that was his biggest thing. He loves to serve."
"The army cannot condone this kind of racism and abuse among their soldiers, especially superior officers. And if the army allowed this to happen, they're condoning it. They have to intercede and reverse this decision," said City Councilwoman Margaret Chin.
Chen, a 19-year-old Chinatown native, fatally shot himself in October 2011 while serving in Afghanistan.
Prosecutors argued Holcomb dragged Chen over rocks while using racially charged language and claimed the abuse led to the private's suicide.
Seven other soldiers are set to be court martialed in connection with Chen's death.