FTX CEO appeals for Nishad Singh’s freedom to aid recovery efforts FTX CEO appeals for Nishad Singh’s freedom to aid recovery efforts
FTX CEO John J. Ray argued that Nishad Singh's freedom is key to retrieving assets crucial for creditors amid FTX's collapse.
2 min read
Updated: Oct. 30, 2024 at 6:29 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
FTX CEO John J. Ray III urged the court to keep former engineering director Nishad Singh out of prison, arguing that his continued freedom would help maximize asset recovery for the exchange’s creditors.
Ray emphasized Singh’s cooperation as essential to FTX’s ongoing bankruptcy proceedings, where he has already assisted in asset recovery and provided critical information about company operations.
In an Oct. 30 letter filed with the US District Court for the Southern District of New York, Ray highlighted Singhโs insider knowledge and technical expertise as crucial assets in tracking down funds.
Ray cited Singh’s assistance in retrieving property in the Bahamas purchased with company funds and sharing key documents with FTX debtors. He suggested Singh could offer further support by testifying in court and locating additional assets.
According to Ray:
“Nishad Singh’s cooperation remains critical for FTX creditors.”
Singh previously pleaded guilty to charges of financial misconduct and campaign finance violations linked to FTX’s downfall, making him one of the first insiders to admit guilt.
Prosecutors acknowledged Singh’s cooperation in their case against FTX’s former CEO, Sam Bankman-Fried, describing it as “substantial assistance” that contributed to his conviction.
Singh, one of the first FTX insiders to plead guilty, admitted to charges of financial misconduct and campaign finance violations tied to FTX’s collapse. His legal team argued for time served, stressing that Singh’s assistance had been instrumental in clarifying complex financial transactions at the exchange.
Judge Lewis Kaplan will weigh Singh’s cooperation as he considers sentencing, which is scheduled for later today.
Since filing for Chapter 11 in November 2022, FTX has undertaken an extensive recovery effort to reimburse its creditors. Ray’s leadership has steered these efforts, focusing on tracing assets across jurisdictions and untangling the network of transactions between FTX and Alameda Research.
FTX’s team has already recouped a portion of assets from real estate and liquid assets linked to the company’s former executives, but Ray suggested that Singh’s ongoing cooperation would enhance the chances of maximizing creditor recovery.
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Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
John J Ray III is the Chief Restructuring Officer and now-appointed CEO of FTX, a cryptocurrency derivatives exchange.