Nishad Singh was sentenced to prison and three years of supervised release. The judge noted that Mr. Singh's involvement was limited compared to other FTX executives. Mr. Singh cooperated with prosecutors and assisted in the investigation into the FTX collapse.
Nishad Singh, former engineering director of failed cryptocurrency exchange FTX, was sentenced to prison and three years of supervised release in a federal court in New York on October 30, 2024.
The decision follows Singh's February 2023 guilty plea to six felonies related to misappropriation of user funds and campaign finance violations.
At the sentencing hearing, Judge Lewis Kaplan acknowledged the gravity of the situation, saying, “This may have been one of the greatest crimes in American history,” but said Mr. Singh's involvement was criticized by FTX founder Sam Bankman. He also pointed out that it appears to be limited compared to his involvement. -Mr. Freed and former Alameda Research CEO Caroline Ellison.
Mr. Singh expressed “overwhelming regret” for his actions and emphasized the weight of his decisions during a turbulent period for FTX.
Cooperation with federal prosecutors played a key role in Mr. Singh's sentencing. He provided what U.S. prosecutors called “substantial assistance” in the ongoing investigation into FTX's collapse, which has led to multiple indictments of former executives.
Singh's lawyers argued for a lenient sentence, emphasizing that the fraud was primarily due to the actions of Bankman Freed and Ellison. The court also took into account the views of FTX's new CEO, John Ray, who suggested that Singh's skills may be more beneficial in the bankruptcy process than serving time in prison.
Singh's sentencing comes amid a broader crackdown on FTX executives, with Bankman Fried in custody since August 2023 and Ellison expected to turn himself in by November 7. The fallout from the FTX bankruptcy continues, with the foundation taking legal steps to recover lost assets. Recently filed a lawsuit against KuCoin for over $50 million.
As the FTX saga unfolds, Singh becomes the fourth former executive to be sentenced, with co-founder Gary Wang scheduled to appear in court on November 20th.
