US prosecutors recommend leniency for former FTX executive Nishad Singh following ‘substantial assistance’ US prosecutors recommend leniency for former FTX executive Nishad Singh following ‘substantial assistance’
US prosecutors said Nishad Singh helped them to uncover FTX's hidden financial misconduct.
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Updated: Oct. 24, 2024 at 7:32 pm UTC
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US prosecutors have requested that the court favorably consider former FTX executive Nishad Singh’s “substantial assistance” during their investigation into the failed crypto exchange, according to an Oct. 23 court filing.
The prosecutors noted that he approached his cooperation with genuine remorse and a strong desire to help. According to the authorities, Singh’s “exemplary cooperation” played a pivotal role in helping the government uncover how FTX’s systems enabled the misuse of customer funds.
Singh’s extensive cooperation
They furthered that Singh also provided detailed information on Sam Bankman-Fried‘s involvement in transactions that involved stolen money.
They stated that Singh’s cooperation went further. He revealed illegal activities the government had not previously uncovered, such as Ryan Salame‘s and Bankman-Fried’s participation in one of the largest campaign finance violations in history. He also exposed how Bankman-Fried falsified FTX’s financial statements to make the company appear more profitable than it was.
The authorities added:
“Subsequent to his guilty plea, Singh met with the Government at least 20 times, and spent additional time outside of these meetings reviewing computer code, documents, emails, Signal messages, and spreadsheets in order to identify and decode relevant documents for the Government.”
What does this mean for Singh?
As a result of Singh’s cooperation, prosecutors have asked the court to consider sentencing Singh under Section 5K1.1 of the US Sentencing Guidelines. This section allows for a reduced sentence when the defendant has provided substantial assistance in the investigation or prosecution of others involved in criminal activity.
Part of the section reads:
“The nature, extent, and significance of assistance can involve a broad spectrum of conduct that must be evaluated by the court on an individual basis. Latitude is, therefore, afforded the sentencing judge to reduce a sentence based upon variable relevant factors”
In Singh’s case, this could lead to a lighter sentence than for other FTX leaders, such as Salame, Caroline Ellison, and Bankman-Fried, who face several years in prison.
Notably, Singh’s attorneys have even requested a “time served” sentence, citing his limited role in FTX’s collapse and efforts to prevent fraud. They also noted that Singh’s actions helped FTX Japan avoid disaster.
Singh is scheduled to be sentenced on Oct. 30.
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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.
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.