Former FTX Head of Engineering Nishad Singh Avoids Prison Time

Nishad Singh, the former head of engineering at FTX, has been sentenced to time served along with three years of supervised release. This decision allows him to evade additional prison time for his involvement in the massive fraud that led to the collapse of the cryptocurrency exchange.

• The sentencing was conducted by Judge Lewis A. Kaplan in New York. Singh now faces an $11 billion forfeiture and becomes the fourth former FTX employee to face legal consequences in court.

Cooperation and Mitigating Factors

Initially, Singh was facing a potential sentence of up to 75 years after pleading guilty to six criminal charges last year. However, his attorneys successfully argued for a more lenient sentence, emphasizing his limited role in the misconduct and his efforts to rebuild his life post-FTX.

• Judge Kaplan acknowledged Singh's cooperation as “remarkable,” noting that his involvement in the fraudulent activities was significantly less than that of FTX founder Sam Bankman-Fried and Caroline Ellison, the former CEO of Alameda Research. This assessment contributed to the lighter sentence.

• Singh's attorney, Andrew Goldstein, argued that Singh should not be compared to Ellison or co-founder Gary Wang, as he was not directly involved in the central conspiracy leading to FTX’s downfall. Singh reportedly became aware of Alameda Research's improper withdrawals of customer funds only in September 2022, shortly before the company’s collapse.

• Prosecutors recognized Singh's extensive cooperation, revealing that he met with them more than 24 times and expressed genuine remorse. His insights provided crucial information about previously unknown crimes, including a campaign finance scheme that might have otherwise remained undiscovered.

Comparative Sentences for Other FTX Executives

In recent legal proceedings, Caroline Ellison received a two-year sentence for her part in the scandal, while Sam Bankman-Fried was sentenced to 25 years. Ryan Salame, who led FTX Digital Markets and did not cooperate with the investigation, received a sentence of seven and a half years for his involvement in an illegal campaign finance operation.

• Gary Wang, the last cooperating witness, is scheduled for sentencing on November 20.

Nishad Singh's sentencing highlights the complexities of the legal repercussions faced by former FTX executives. While he has dodged prison time, the ongoing investigations and sentences for other key figures underscore the seriousness of the fraud that unfolded at the now-defunct exchange.