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 once served as technical director at FTX, said was ordered Losing $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 faced a maximum sentence of 75 years in prison. However, Judge Lewis Kaplan praised Singh's cooperation with authorities. It was noted that his involvement in the scam was also smaller than that of FTX founder Sam Bankman-Fried or Caroline Ellison, the former CEO of Alameda Research.
Ellison, who made important testimony against Bankman-Fried, was recently sentenced to two years in prison Jail Sentence.
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Singh expressed remorse in a statement
In a soft-spoken statement to the court, Singh expressed regret for straying from his values. He admitted that he did not expect forgiveness.
He emphasized that assisting in the government's investigation gave him a sense of purpose. Only before During his hearing, Singh was seen pacing back and forth nervousby repeating his statement on a single printed page.
FTX's decline began in November 2022, when the exchange was not able to meet the withdrawal requirements of customers. This led to allegations of $8 billion in stolen customer funds.
Bankman-Fried was sentenced to 25 years in prison in March 2024. He was Also condemned to lose $11 billion.
Andrew Goldstein, Singh's lawyer and a former assistant U.S. attorney, argued that Singh became involved late in FTX's misconduct. He highlighted Singh's extensive cooperation with investigators, including his testimony in Bankman-Fried's trial.
Andrew D. Goldstein, attorney for former FTX chief engineer Nishad Singh
Goldstein was once head of the public corruption division of the U.S. Attorney's Office for the Southern District of New York (SDNY), the same unit that investigated FTX.
In addition to his… pic.twitter.com/HCECGuegzQ
– FTX Historian (@historian_ftx) October 31, 2024
Prosecutors said they met with Singh on at least 24 occasions during which he showed serious remorse and helped uncover criminal behavior previously unknown to authorities.
Nicolas Roos, one of the trial lawyers, found that Singh was instrumental in bringing a campaign finance scheme to light. Roos said it was “completely unknown” to the government before Singh's collaboration.
Bankman-Fried was originally accused of making $100 million in campaign contributions for the 2022 midterm elections using stolen client funds.
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Judge Kaplan appreciates Singh's cooperation
In handing down the sentence, Judge Kaplan commended Singh's cooperation and declared, “You did the right thing.” More than 30 friends and family members, including Singh's fiancée and parents, attended the hearing and submitted more than 100 letters on his behalf.
In particular, Gabe Bankman-Fried, the disgraced founder's brother, called Singh “one of the nicest people.” [he has] ever known” and asked the judge for compassion.
John Ray, who took over as CEO of FTX after the bankruptcy, also vouched for Singh. He noted his valuable support during the process and his voluntary return of the Bahamian properties purchased with FTX funds.
As Singh moves forward, the case against his former colleagues continues. Gary Wang, co-founder of FTX and former technology chief, is due to be sentenced on November 20th.
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