Nishad Singh Case: Former FTX Executive Set for Sentencing in $8B FTX Fraud

Nishad Singh Case: Former FTX Executive Avoids Prison Sentence Over $8B FTX Fraud

October 30, 2024 Updated October 31, 2024

By Teuta Franjkovic

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Kalshi US Election prediction CFTC Court ruling

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

Nishad Singh, former chief engineer of FTX, faced sentencing on Wednesday for his role in the $8 billion fraud orchestrated by Sam Bankman-Fried. Singh’s involvement contributed to FTX’s collapse and massive investor losses.

Nishad Singh appeared in a New York federal courtroom today, at 3 PM, for his final sentencing regarding the crimes he committed while working at FTX. After statutory minimums, sentencing guidelines, and review of relevant documents, Judge Lewis A. Kaplan ruled for a sentence of time served, along with three years of supervised release.

Singh told Kaplan:

“I am overwhelmed with remorse for the harm I’ve participated in and caused so many innocent people. The two months before and the two months after the FTX collapse were the hardest of my life.”

Ahead of sentencing, FTX bankruptcy CEO John J. Ray III issued a letter to Judge Lewis Kaplan, emphasizing Singh’s cooperation with debtors. The letter details Singh’s efforts to assist, including returning Bahamian property bought with company funds.He also gave all documents, and responded regularly to investigative inquiries.

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.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.