In a surprising turn, U.S. District Judge Lewis Kaplan sentenced former FTX executive Nishad Singh to time served, sparing him from further imprisonment. Singh, the former chief engineer at FTX, previously pled guilty to six felony charges, including fraud and conspiracy. The sentencing decision, reported by The New York Times, came after his lawyer advocated for leniency.
Singh’s Cooperation and Its Role in Sentencing The court’s decision comes amid FTX’s ongoing legal fallout, involving the alleged misuse of around $8 billion in customer funds under the leadership of FTX founder Sam Bankman-Fried. Singh, a key figure in FTX’s operations, became a pivotal witness for the prosecution, providing detailed information on FTX’s internal fraud during Bankman-Fried’s trial.
Singh’s cooperation has been invaluable in the bankruptcy proceedings. FTX’s appointed CEO, John J. Ray III, submitted a letter to Judge Kaplan emphasizing Singh’s role in asset recovery for creditors, including voluntarily returning assets bought with misappropriated funds. The federal prosecution also cited Singh’s substantial assistance in a 5K letter, underscoring the significance of his cooperation in the court’s decision.
Judge Kaplan’s Decision Amid Broader FTX Sentences Judge Kaplan noted that, unlike other key FTX executives, Singh’s involvement appeared less premeditated, influencing the time-served sentence. Additionally, Singh’s attorneys argued that his later entry into FTX’s activities indicated lesser culpability compared to other executives. The ruling is notable given that Singh’s colleague, Caroline Ellison, was sentenced to two years in prison, reflecting a greater degree of accountability imposed on FTX’s executive team.
With the verdict finalized, Singh is expected to continue assisting FTX’s bankruptcy team as it works on asset recovery efforts.
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