Crypto Fraud: Remorseful Nishad Singh Of FTX Spared Jail Time
India-West News Desk
NEW YORK, NY – Nishad Singh, the former head of engineering at FTX, was spared jail time on October 30, receiving a sentence of time served and three years of supervised release due to his extensive cooperation with federal prosecutors.
Judge Lewis Kaplan, presiding over the sentencing in Manhattan, highlighted Singh’s contributions to the investigation as “remarkable,” noting that Singh’s involvement in the fraud was far less extensive than that of Sam Bankman-Fried, the founder of FTX, or Caroline Ellison, former CEO of Alameda Research, FTX’s affiliated hedge fund.
Singh, who had pleaded guilty to six criminal charges, including conspiracy to commit securities fraud and conspiracy to violate campaign finance laws, was originally facing up to 75 years in prison. However, Judge Kaplan acknowledged Singh’s sincere remorse and willingness to aid the government’s investigation.
According to prosecutors, Singh met with them more than 24 times, providing critical information that led to the discovery of additional criminal conduct, including details of a campaign finance scheme that might have otherwise gone undetected. This scheme was part of a broader misuse of customer funds by FTX executives, reportedly totaling $8 billion.
FTX, which once ranked among the world’s largest cryptocurrency exchanges, went into bankruptcy in November 2022. Bankman-Fried, who was accused of misappropriating client funds was sentenced to 25 years and Caroline Ellisonreceived a two-year sentence.
In his address to the court, Singh expressed deep regret, saying he had betrayed his values and harmed countless people, adding that aiding the government gave him a sense of purpose. Leading up to the sentencing, Singh’s supporters, including over 100 friends and family members, submitted letters to the court describing his character. His attorney, Andrew Goldstein, argued that Singh had joined FTX’s activities late in the scheme, distancing him from the core decisions around the misappropriation of funds.
During FTX’s heyday, Singh held an equity stake of approximately 6-7% in the company, momentarily placing him among crypto’s wealthiest figures and had him in close proximity to the ensuing scandal.
Shoorveer Tyagi
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No remorse accepted from this cheat. He was instrumental in peoples’ hard earned money lost. He should had been sentenced to 50 years in prison. Very wrong judgement. Where were these friends, who came in his support in the court, when he was cheating innocent people. Shame on him and his friends.
October 31, 2024