NewsletterNishad Singh Case: Former FTX Executive Avoids Prison Sentence Over $8B FTX Fraud
Highlights
- Nishad Singh, former FTX chief engineer, awaits sentencing for his role in the $8 billion fraud.
- Singh's cooperation with authorities, including asset recovery and providing key information, may result in a lighter sentence.
- The judge has emphasized the seriousness of the crimes and the need for justice.
Former FTX chief engineer Nishad Singh won’t be serving jail time for his role in the multibillion-dollar fraud carried out at the cryptocurrency exchange.
Judge Lewis A. Kaplan of the federal court in New York sentenced Singh on Wednesday to time served after he took the stand and provided testimony that helped convict FTX founder Sam Bankman-Fried, the scheme’s mastermind.
FTX Exec Nishad Singh Won’t Be Serving Prison Sentence
Ray said Singh and the debtors were working on a pact for Singh to offer continuing cooperation. This could include testifying in bankruptcy court and assisting with asset recovery.
He also wrote that Singh was among the most senior executives at FTX prior to the Chapter 11 case, Therefore, he is uniquely knowledgeable about the company’s systems and procedures. He was also introduced to many of the material events and transactions that happened.
FTX Engineer Who Helped Recover Millions
Sam Bankman-Fried, 32, is serving 25 years in the Metropolitan Detention Center in Brooklyn after FTX – the cryptocurrency exchange he founded – blew up in November 2022.
Nishad Singh, at age 29, went without sentence, unlike Bankman-Fried. Prosecutors have requested leniency for Singh. His attorneys have suggested no prison time given his extraordinary cooperation in the government’s investigation and asset recovery for victims.
Even though he decided to release him, Judge Kaplan has made it clear that even with cooperation, the seriousness of the case demands accountability. Last month, he sentenced former Alameda Research executive Caroline Ellison, Bankman-Fried’s ex-girlfriend, to two years in prison. Lawyers for Nishad Singh said he joined the scheme later. He came after Bankman-Fried and Ellison had decided to divert billions of FTX customer funds to cover losses at Alameda.
Bankman-Fried made his name and fortune during the cryptocurrency boom, with his net worth reaching $26B in October 2021. He was known for his donations to philanthropic causes and Democratic politicians. When the bankruptcy happened, political parties became more careful regarding crypto donations. However, as seen in 2024 US Election case, both Republicans and Democrats are accepting it. The latest went from Ripple’s co-founder Chris Larsen to Kamala Harris team and was widely criticized.
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