Former FTX Engineering Leader Sentenced to Time Served

Crypto News

Written by Gode S.,

Web3 Market Analyst

Last Updated: October 31, 2024

Key Takeaways

Nishad Singh, ex-engineering director at FTX, received a time-served sentence after pleading guilty to misusing client funds and violating campaign finance laws;
Judge Kaplan highlighted that Singh's role was less central than that of Sam Bankman-Fried and Caroline Ellison;
Singh's assistance to prosecutors was crucial in receiving a more lenient sentence.

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Former FTX Engineering Leader Sentenced to Time Served

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Nishad Singh, who previously served as the engineering director for the now-defunct FTX crypto exchange, has been sentenced to time already served and will undergo three years of supervised release.

This judgment comes after he admitted guilt to charges involving the misuse of customer assets and breaches of campaign finance regulations.

Singh stood before Judge Lewis Kaplan in the United States District Court for the Southern District of New York on October 30.

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His sentencing marks him as the fourth executive linked to FTX to receive a verdict, following former CEO Sam Bankman-Fried, ex-Alameda Research CEO Caroline Ellison, and Ryan Salame, the former co-CEO of FTX Digital Markets.

During the court proceedings, Singh's defense emphasized that the fraudulent activities at FTX were orchestrated by Bankman-Fried and Ellison and that Singh did not know about them. Singh expressed deep remorse, stating he was overwhelmed with regret for his part in the scheme.

Judge Kaplan acknowledged the magnitude of the crime but noted Singh's comparatively minor involvement:

This may have been one of the biggest crimes in American history. But I'm convinced your involvement was much more limited than certainly Bankman-Fried's and Ellison's. Bankman-Fried was older than you, you were inexperienced, I imagine you had no idea what to do other than hope things got better.

Prosecutors highlighted Singh's considerable assistance in building the case against Bankman-Fried, recommending that his cooperation be considered during sentencing. Singh's legal team requested a sentence of time served.

Meanwhile, other former FTX executives are also facing the consequences of their actions. Bankman-Fried has been sentenced to 25 years, yet his attorneys filed an appeal against his conviction and sentencing. Salame began serving his prison sentence on October 11, and Ellison is expected to surrender herself by November 7.

Looking ahead, FTX co-founder Gary Wang is scheduled for a sentencing hearing on November 20 and is anticipated to be the final individual in this case to appear before Judge Kaplan.

As the legal proceedings continue, the roles and responsibilities of each executive in the downfall of FTX are becoming increasingly clear, shedding light on the complexities of one of the largest financial frauds in recent memory.