Former FTXs Head of Engineering Nishad Singh Dodges Prison
Nishad Singh, the former FTX head of engineering, was sentenced to time served and three years of supervised release. He avoided further prison for his role in the multibillion-dollar fraud at the collapsed cryptocurrency exchange.
Singh, sentenced by Judge Lewis A. Kaplan in New York, also faces an $11 billion forfeiture, becoming the fourth ex-FTX employee held accountable in court.
Limited Role and Cooperation
Although Singh was initially facing a potential 75-year sentence after pleading guilty to six criminal charges early last year, his attorneys successfully argued for leniency, citing the execs personal history, limited role in the misconduct, and efforts to rebuild his life since FTXs downfall.
Judge Kaplan highlighted Singhs cooperation as remarkable and indicated that his role in the fraud was considerably less significant than that of FTX founder Sam Bankman-Fried or Caroline Ellison, the former CEO of Alameda Research. This assessment ultimately led to a more lenient sentence than might otherwise have been imposed.
Andrew Goldstein, Singhs attorney and a former assistant US attorney for the Southern District of New York, had previously argued that he should be viewed differently from Ellison and FTX co-founder Gary Wang, asserting he was not directly involved in the core conspiracy surrounding FTXs collapse.
Singh reportedly became aware of Alameda Researchs improper withdrawal of FTX customer funds only in September 2022, just two months before the companys downfall.
Prosecutors acknowledged Singhs extensive cooperation in the case, revealing that the former exec met with them over 24 times and showed sincere remorse and a commitment to assisting the investigation. Singh provided crucial information on crimes previously unknown to authorities. This included a campaign finance scheme that would likely have remained undiscovered without his input.
Unpacking the FTX Sentences
Ellison received a two-year sentence in September for her involvement in the FTX scandal while Bankman-Fried was awarded 25 years in prison.
Meanwhile, Ryan Salame, who led FTX Digital Markets and opted not to cooperate in the case against FTXs founder, was sentenced to seven and a half years in prison for his role in an unlawful campaign finance operation.
Meanwhile, Wang, who happens to be the last cooperating witness, is set to be sentenced on November 20.
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