Former FTX executive Nishad Singh was sentenced to prison and three years of supervised release on Wednesday, becoming the fourth former employee of the collapsed cryptocurrency exchange to face legal consequences.
In addition to his sentence, Singh, who was formerly head of engineering at FTX, was ordered lose $11 billion.
He pleaded guilty to six criminal charges early last year. The charges include conspiracy to commit securities fraud and violations of campaign finance laws.
He faces a maximum sentence of 75 years in prison. However, Judge Lewis Kaplan acknowledged Singh’s cooperation with authorities. It was noted that his involvement in the fraud was also less than that of FTX founder Sam Bankman-Fried or Caroline Ellison, former CEO of Alameda Research.
Ellison, who provided key testimony against Bankman-Fried, recently received a two-year sentence prison sentence.
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Singh expresses remorse in statement
In a soft-spoken statement to the court, Singh expressed remorse for straying from his values. He admitted he didn’t expect a pardon.
He stressed that his assistance with the government’s investigation gave him purpose. Just Before his hearing, Singh was seen pacing nervouslyrepeating his statement from a single printed page.
FTX’s fall began in November 2022 when the exchange could not respond to customer withdrawal requests. This led to allegations of theft of $8 billion in customer funds.
Bankman-Fried was sentenced to 25 years in prison in March 2024. He was Also ordered to confiscate $11 billion.
Andrew Goldstein, Singh’s attorney and former assistant U.S. attorney, argued that Singh was involved in FTX’s wrongdoing late in the game. He noted Singh’s extensive cooperation with investigators, including his testimony at Bankman-Fried’s trial.
Andrew D. Goldstein, attorney for former FTX chief engineer Nishad Singh
Goldstein previously served as head of the public corruption unit within the U.S. Attorney’s Office for the Southern District of New York (SDNY), the same unit that investigated FTX.
In addition to its… pic.twitter.com/HCECGuegzQ
– FTX Historian (@historian_ftx) October 31, 2024
Prosecutors revealed they met with Singh on at least 24 occasions, during which he showed sincere remorse and helped uncover criminal conduct previously unknown to authorities.
Nicolas Roos, one of the trial prosecutors, noted that Singh was instrumental in bringing a campaign finance scheme to light. Roos said this was “totally unknown” to the government. Before Singh’s cooperation.
Bankman-Fried was initially accused of using stolen client funds to make $100 million in campaign contributions for the 2022 midterm elections.
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Judge Kaplan recognizes Singh’s cooperation
At sentencing, Judge Kaplan acknowledged Singh’s cooperation, saying, “You did the right thing.” » More than 30 friends and family members, including Singh’s fiancée and parents, attended the hearing and more than 100 letters were submitted on his behalf.
Notably, Gabe Bankman-Fried, brother of the disgraced founder, called Singh “one of the kindest people (he has) ever known” and asked for the judge’s compassion.
John Ray, who took over as CEO of FTX after the bankruptcy, also vouched for Singh. He cited his valuable assistance during the proceedings and his voluntary return of Bahamian real estate acquired with FTX funds.
As Singh moves forward, the trial against his former colleagues continues, with Gary Wang, co-founder and former chief technology officer of FTX, scheduled to be sentenced on November 20.
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