Judge grants leniency to Nishad Singh in FTX scandal for crucial cooperation Judge grants leniency to Nishad Singh in FTX scandal for crucial cooperation
Judge Kaplan acknowledged Singh's limited role in the FTX scandal and granted him a more lenient sentence.
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Updated: Oct. 30, 2024 at 8:32 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Nishad Singh, former engineering director at defunct exchange FTX, was sentenced to time served and three years of supervised release on Oct. 30 for his role in misappropriating user funds and violating campaign finance laws.
The decision, handed down by US District Judge Lewis Kaplan, follows Singh’s February guilty plea to six felony charges and his cooperation with prosecutors.
In the Southern District of New York courtroom, Judge Kaplan acknowledged the gravity of the FTX collapse, which has been characterized as one of the largest financial scandals in US history.
However, the judge noted that Singh’s role was “more limited” compared to that of FTX founder Sam Bankman-Fried and former Alameda Research CEO Caroline Ellison. Singh expressed remorse for his involvement, telling the court that he was “overwhelmed with regret.”
His cooperation has been instrumental to the ongoing case against Bankman-Fried, who remains in custody following his bail revocation in August 2023. It has also aided efforts by FTX debtors to recoup lost funds. John Ray, FTX’s current CEO, advocated for Singh’s leniency, suggesting that Singh could further assist with FTX’s bankruptcy proceedings.
Ellison, who is scheduled to report to prison by Nov. 7, and co-defendant Ryan Salame, who began his sentence in early October, are among the former FTX insiders to face sentencing. FTX co-founder Gary Wang, another key figure, is expected to appear in court for sentencing on Nov. 20.
The FTX scandal has sparked ongoing discussions regarding regulatory reforms in the cryptocurrency sector. US authorities are closely scrutinizing exchanges and decentralized finance platforms.
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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.
Alameda Research
Alameda Research was once a principal trading firm, operating as an arm of the failed crypto exchange, FTX.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.
Caroline Ellison is the former lead trader and former CEO at Alameda Research.
Ryan Salame is the former co-CEO at FTX Digital Markets (FDM), the Bahamian subsidiary of FTX Trading Limited.