Former FTX Executive Receives Lenient Sentence for Cooperation
In a surprising turn of events, Nishad Singh, a former executive at the now-defunct cryptocurrency exchange FTX, was sentenced to time served and three years of supervised release on Wednesday. This lenient sentence was largely due to his remarkable cooperation with the government, which was instrumental in bringing down FTX founder Sam Bankman-Fried and other accomplices.
A Limited Role in the Fraud
According to New York Judge Lewis Kaplan, Singh’s involvement in the fraud was significantly limited compared to that of Bankman-Fried and Caroline Ellison, the former CEO of sister hedge fund Alameda Research. Singh, who was FTX’s head of engineering, pleaded guilty to six criminal charges, including conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to violate campaign finance laws.
A Statement of Remorse
Before the hearing, Singh rehearsed his statement, expressing remorse for his actions and acknowledging that he had strayed from his values. He emphasized that assisting the government’s investigation had given him a sense of purpose.
Cooperation with the Government
Singh’s attorney, Andrew Goldstein, highlighted his client’s extensive cooperation with the government, including testifying at Bankman-Fried’s trial last year. Prosecutors noted that Singh met with them on at least 24 occasions, demonstrating “earnest remorse and eagerness to assist.” He also brought to light criminal conduct that the government was not aware of, including details of a campaign finance scheme.
A Message of Leniency
Prosecutor Nicolas Roos argued that leniency in Singh’s case would send an important message, encouraging others to cooperate with the government in similar cases. Judge Kaplan agreed, telling Singh, “You did the right thing.”
Support from Friends and Family
The courtroom was filled with over 30 of Singh’s friends and family members, including his fiancée, parents, and brothers. More than 100 people submitted letters on his behalf, including one from Bankman-Fried’s brother, Gabe, who praised Singh’s kindness.
Other FTX Executives Face Sentencing
Ryan Salame, another former top lieutenant of Bankman-Fried, was sentenced to seven and a half years in prison in May. Gary Wang, the co-founder and ex-technology chief of FTX, will be sentenced on November 20.
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