- Nishad Singh has been sentenced to time served and three years of supervised release
- The judge noted Singh’s limited involvement compared to other FTX executives
- Singh cooperated with prosecutors, aiding investigations into FTX’s collapse
Nishad Singh, the former engineering director of the collapsed cryptocurrency exchange FTX, was sentenced to time served and three years of supervised release in a federal court in New York.
This decision follows Singh’s guilty plea to six felony charges related to misappropriating user funds and campaign finance violations, which he entered in February 2023.
During the sentencing hearing, Judge Lewis Kaplan acknowledged the gravity of the situation, stating, “This may have been one of the biggest crimes in American history.”
Kaplan also noted that Singh’s involvement appeared to be limited compared to that of FTX’s founder Sam Bankman-Fried and former Alameda Research CEO Caroline Ellison, according to a report from Inner City Press.
Singh’s lawyer: Most of it was done by Sam and Caroline. Nishad did not know about it. The billions were stolen before. It was Bankman-Fried with Ellison’s assent to use $1 billion in customer funds. Nishad was in the dark, not in the inner circle. He didn’t know
— Inner City Press (@innercitypress) October 30, 2024
Singh expressed “overwhelming remorse” for his actions, highlighting the weight of his decisions during FTX’s tumultuous period.
“Substantial assistance”
Singh’s cooperation with federal prosecutors played a significant role in his sentencing outcome. He provided what US prosecutors described as “substantial assistance” in the ongoing investigations surrounding FTX’s collapse, which has resulted in multiple indictments of former executives.
Singh’s attorneys argued for a lenient sentence, emphasizing that the fraud primarily stemmed from the actions of Bankman-Fried and Ellison. The court also considered the perspective of John Ray, the new FTX CEO, who suggested that Singh’s skills could be more beneficial to the bankruptcy proceedings than serving time in prison.
Singh’s sentencing comes amidst a broader crackdown on FTX executives, with Bankman-Fried sentenced to 25 years in prison and Ellison expected to surrender by November 7. The fallout from FTX’s collapse continues, as the estate pursues legal actions to recover lost assets, including a recent lawsuit against KuCoin for over $50 million.
As the FTX saga unfolds, Singh is the fourth former executive to receive sentencing, with co-founder Gary Wang set to face the court on November 20.
