FTX’s Nishad Singh Avoids Jail Time for Crypto Fraud: What Will Be Gary Wang's Fate?

Thursday, 31/10/2024 | 07:05 GMT by Arnab Shome
  • Singh pleaded guilty to six felony charges, which carried a potential maximum sentence of 75 years.
  • The judge acknowledged his cooperation, describing it as “remarkable.”
FTX

The cooperation of Nishad Singh, the former chief engineer at the now-collapsed FTX, with the authorities was advantageous, as he was sentenced to time served along with three years of supervised release yesterday (Wednesday). He has also been ordered to forfeit $11 billion.

Singh previously pleaded guilty to six counts of fraud and conspiracy for his role in the $8 billion fraud led by Sam Bankman-Fried, the former CEO of the exchange, who is now serving a 25-year prison term. Singh faced a possible 75-year sentence but chose to cooperate with the investigation and testified against his former boss, Bankman-Fried.

The Sentencing of FTX Felons

Bankman-Fried, who orchestrated FTX's dubious practices along with its affiliate Alameda Research, became a central target of the prosecutors and was the first to receive sentencing in connection with the case. He recently appealed his conviction, alleging judicial bias.

Other senior associates, including Singh, also pleaded guilty and assisted in the investigations against the FTX founder. Caroline Ellison, who was Bankman-Fried’s former girlfriend and the CEO of Alameda, served as a key witness in the prosecution of the FTX founder, receiving a two-year prison term.

Ryan Salame, the former co-CEO of FTX, also pleaded guilty but did not testify against Bankman-Fried. He received a seven-and-a-half-year prison sentence, sparking attention with an unusual LinkedIn update regarding his imprisonment.

Only the sentencing of Gary Wang, the co-founder and former technology chief of FTX, remains, scheduled for November 20.

Limited Involvement of Singh

“You did the right thing,” New York Judge Lewis Kaplan stated during Singh’s sentencing. “You immediately and truthfully, as far as I can see, fully disclosed to the government the wrongdoing you were aware of, which they quite clearly were not.”

The judge also noted that Singh’s role in the illegal activities of FTX was “more limited than, certainly, Bankman-Fried and Ellison.” Prosecutor Nicolas Roos also commended Singh before the judge for coming forward.

According to Singh’s lawyer, Andrew Goldstein, his client became involved in Bankman-Fried’s scheme at a later stage, after nearly all the billions of dollars in customer funds had already been misappropriated.

The cooperation of Nishad Singh, the former chief engineer at the now-collapsed FTX, with the authorities was advantageous, as he was sentenced to time served along with three years of supervised release yesterday (Wednesday). He has also been ordered to forfeit $11 billion.

Singh previously pleaded guilty to six counts of fraud and conspiracy for his role in the $8 billion fraud led by Sam Bankman-Fried, the former CEO of the exchange, who is now serving a 25-year prison term. Singh faced a possible 75-year sentence but chose to cooperate with the investigation and testified against his former boss, Bankman-Fried.

The Sentencing of FTX Felons

Bankman-Fried, who orchestrated FTX's dubious practices along with its affiliate Alameda Research, became a central target of the prosecutors and was the first to receive sentencing in connection with the case. He recently appealed his conviction, alleging judicial bias.

Other senior associates, including Singh, also pleaded guilty and assisted in the investigations against the FTX founder. Caroline Ellison, who was Bankman-Fried’s former girlfriend and the CEO of Alameda, served as a key witness in the prosecution of the FTX founder, receiving a two-year prison term.

Ryan Salame, the former co-CEO of FTX, also pleaded guilty but did not testify against Bankman-Fried. He received a seven-and-a-half-year prison sentence, sparking attention with an unusual LinkedIn update regarding his imprisonment.

Only the sentencing of Gary Wang, the co-founder and former technology chief of FTX, remains, scheduled for November 20.

Limited Involvement of Singh

“You did the right thing,” New York Judge Lewis Kaplan stated during Singh’s sentencing. “You immediately and truthfully, as far as I can see, fully disclosed to the government the wrongdoing you were aware of, which they quite clearly were not.”

The judge also noted that Singh’s role in the illegal activities of FTX was “more limited than, certainly, Bankman-Fried and Ellison.” Prosecutor Nicolas Roos also commended Singh before the judge for coming forward.

According to Singh’s lawyer, Andrew Goldstein, his client became involved in Bankman-Fried’s scheme at a later stage, after nearly all the billions of dollars in customer funds had already been misappropriated.

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6571 Articles
  • 92 Followers

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