New York, Tuesday, November 5, 2024 – Nishad Singh, a former chief engineer at FTX, was sentenced to three years of supervised release last Wednesday for his role in the exchange’s massive fraud scheme.
US District Judge Lewis Kaplan, who presided over the Manhattan federal court case, spared Singh from prison, recognizing his cooperation in the investigation leading to FTX founder Sam Bankman-Fried’s conviction.
Singh, who previously pleaded guilty to six felony counts of fraud and conspiracy, had played a critical role as a prosecution witness in Bankman-Fried’s case.
Judge Kaplan highlighted that Singh’s involvement in the fraudulent activities was considerably less than Bankman-Fried’s and former Alameda Research CEO Caroline Ellison’s, both of whom received harsher sentences.
While Ellison was sentenced to two years, Bankman-Fried is currently serving a 25-year term.
Prosecutors credited Singh’s swift cooperation, noting his willingness to confess to his role in the scheme. Singh’s lawyer, Andrew Goldstein, pointed out that Singh was unaware of the full extent of the fraud orchestrated by Bankman-Fried and Ellison until later stages.
Singh’s testimony included details about a conversation in September 2022, when he confronted Bankman-Fried over a severe shortfall in customer funds. Bankman-Fried allegedly assured him that funds would be raised to cover the deficit. Singh returned to the U.S. as the crypto exchange collapsed in November 2022, meeting with federal prosecutors shortly afterward.
As Singh now embarks on a supervised release, Gary Wang, another former FTX executive, awaits sentencing on November 20.
