Tech

Former FTX Executive Nishad Singh Avoids Prison Time: Must Forfeit $11 Billion

3 weeks ago
Bitcoin Ethereum News

TLDR:

  • Nishad Singh, former FTX engineering head, received no jail time but 3 years supervised release
  • Singh was a key witness against Sam Bankman-Fried, who got 25 years in prison
  • Judge praised Singh’s “remarkable” cooperation with authorities
  • Singh must forfeit $11 billion and helped recover assets in bankruptcy proceedings
  • Current FTX CEO John Ray III advocated for leniency due to Singh’s continued assistance

Former FTX engineering director Nishad Singh avoided prison time Wednesday when Judge Lewis Kaplan sentenced him to time served and three years of supervised release. The decision marks the fourth sentencing of former FTX executives following the crypto exchange’s collapse in late 2022.

Singh, 29, faced up to 75 years in prison after pleading guilty to six criminal charges, including conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to violate campaign finance laws. The court also ordered him to forfeit $11 billion.

Speaking softly in court, Singh expressed remorse for his actions. “I strayed from my values and don’t expect forgiveness,” he told the court. Before the hearing, witnesses observed him practicing his statement alone in the elevator bank, holding a single printed page.

Judge Kaplan praised Singh’s cooperation with authorities as “remarkable” during the sentencing. “You did the right thing, quickly,” Kaplan said, noting that Singh’s involvement in the fraud was far more limited than that of FTX founder Sam Bankman-Fried or former Alameda Research CEO Caroline Ellison.

Prosecutors revealed they met with Singh at least 24 times for multiple hours. Nicolas Roos, one of the prosecutors, highlighted that Singh brought previously unknown criminal conduct to light, particularly regarding the campaign finance scheme. The scheme involved using stolen customer money to make $100 million in campaign contributions before the 2022 mid-term elections.

Singh’s path through the FTX saga began in 2017 when he joined Alameda Research. He quickly rose through the ranks after FTX’s founding in 2019 to become one of its top executives. When the exchange collapsed in late 2022, Singh immediately started cooperating with law enforcement, providing evidence and private communications that proved vital to the case against Bankman-Fried.

The courtroom was packed with over 30 of Singh’s friends and family members, including his fiancée, parents, and brothers in the front row. More than 100 people submitted letters supporting Singh, including an unexpected note from Bankman-Fried’s brother, Gabe, who called Singh “one of the kindest people he has ever known.”

John Ray III, who took over as FTX CEO after its bankruptcy, wrote to the court supporting leniency. Ray emphasized Singh’s valuable assistance throughout the bankruptcy proceedings, including the voluntary return of Bahamian real estate purchased with FTX funds and substantial document production.

Singh’s attorney, Andrew Goldstein, emphasized his client’s late-stage involvement in FTX’s wrongdoing and his extensive cooperation with the government, including testimony at Bankman-Fried’s trial last year.

The sentencing follows different outcomes for other FTX executives. Sam Bankman-Fried received 25 years in prison and an $11 billion forfeiture order. Caroline Ellison, former CEO of Alameda Research and another key witness, got two years in prison. Ryan Salame, another former top lieutenant, received seven and a half years.

Singh currently lives in San Francisco with his fiancée, Claire Watanabe, another former FTX employee. His lawyers say he now works in artificial intelligence.

Gary Wang, FTX’s co-founder and former technology chief, awaits sentencing on November 20.

Source: https://blockonomi.com/former-ftx-executive-nishad-singh-avoids-prison-time-must-forfeit-11-billion/