Nishad Singh Avoids Prison in FTX Case, Cooperating with US Authorities
Nishad Singh, former head of engineering at FTX, has avoided a prison sentence thanks to his cooperation with US authorities in the case against Sam Bankman-Fried. He has been sentenced to probation and the confiscation of his share in over $11 billion worth of assets.
Singh played a key role in testifying against Bankman-Fried, revealing that the former CEO of FTX had informed him about a ‘multi-billion dollar breach’ in client funds prior to the company’s collapse in 2022. The judge noted that Singh’s involvement was ‘much more limited’ than Bankman-Fried’s.
Other FTX accomplices have received harsher sentences, such as Caroline Ellison, former executive at Alameda Research, who was sentenced to two years in prison despite her cooperation. Gary Wang, another guilty plea executive, is still awaiting sentencing.
The Cooperation of Nishad in the SBF x FTX Case Saves Him from Prison
Nishad Singh, former head of engineering at the crypto platform FTX, has avoided a prison sentence due to his collaboration with US authorities in the case involving Sam Bankman-Fried.
At 29 years old, Singh has been sentenced to probation, along with the confiscation of his share in over $11 billion worth of assets, including a stake in an AI company and property in the San Juan Islands. His testimony, crucial during Bankman-Fried’s trial, shed light on the internal dysfunctions of FTX and its collapse in 2022. Singh explained that the former platform CEO had discussed the ‘multi-billion dollar breach’ in client funds with him long before the company collapsed.
A Limited but Controversial Role
During the Manhattan hearing, Judge Lewis Kaplan emphasized that Singh’s involvement in the scandal was ‘much more limited’ than Bankman-Fried’s. Singh only joined the plan to conceal client funds in September 2022, just two months before FTX’s downfall.
This distinction allowed him to avoid prison, a leniency that the court justified by his immediate cooperation with prosecutors and his efforts to aid in the restructuring of FTX. John Ray III, an expert in restructuring who oversaw FTX’s bankruptcy case, also praised Singh’s assistance, noting that he provided ‘invaluable help’ in maximizing creditor recovery chances.
Awareness and Regrets
In court, Singh expressed profound regrets for his role in the case. In a composed tone, he stated that he was ‘overwhelmed by remorse’ and affirmed his desire to redeem himself by making a positive contribution to society. Singh, who joined FTX’s team in 2017 after leaving Facebook, explained that he initially admired Sam Bankman-Fried before seeing that admiration erode over the years. The financial excesses of FTX, represented by multi-million dollar sponsorship contracts such as the Miami basketball stadium or the recruitment of celebrities like Tom Brady and Stephen Curry, eventually appeared to him as ‘excessive’ and superficial.
Diverse Verdicts for FTX Accomplices
While the leniency shown to Singh is noteworthy, other members of Bankman-Fried’s inner circle were not as fortunate. Caroline Ellison, former executive at Alameda Research, the company through which FTX lost billions of dollars, has been sentenced to two years in prison despite her cooperation. Kaplan, who acknowledged Ellison’s ‘sincere remorse’, believed that her assistance could not guarantee her total immunity. Gary Wang, another guilty plea executive who collaborated with prosecutors, is still awaiting his fate.
