Former FTX executive Nishad Singh faces no prison time for his role, avoiding jail through cooperation with prosecutors.
Singh Escapes Prison Despite FTX Collapse Involvement
Nishad Singh, a former top FTX executive, was sentenced to time served, escaping prison time for his role in the infamous FTX collapse. Federal Judge Kaplan issued the sentence Wednesday, citing Singh’s cooperation with investigators. Singh’s case marks the fourth sentencing among FTX executives.
Charges and Restitution Ordered
The court ordered Singh to pay $11 billion in restitution. He previously pleaded guilty to six criminal charges, including wire fraud and conspiracy, in February. The sentencing comes as the latest in a series of punishments for key FTX figures, with former CEO Sam Bankman-Fried facing a 25-year prison term.
Singh’s Role Compared to Ellison
Unlike Caroline Ellison, former Alameda Research CEO and Bankman-Fried’s ex-girlfriend, Singh wasn’t involved from the start. Judge Kaplan noted that Singh became aware of the $8 billion deficit in FTX’s finances only two months before the exchange’s collapse, whereas Ellison was involved for years.
Cooperation Earned a Reduced Sentence
Singh’s cooperation was crucial in uncovering previously unknown crimes and helping authorities. His support extended to the FTX bankruptcy estate, where current CEO John J. Ray III commended Singh’s role in an October letter. Singh’s testimony against Bankman-Fried also played a pivotal role in his leniency.
Questionable Choices Amid Financial Collapse
Though Singh cooperated, he made significant personal financial decisions as FTX faltered. In October 2022, he purchased a $3.7 million property on Orcas Island in Washington. His attorney, Andrew Goldstein, called this a “deep mistake” but stressed Singh’s overall positive character and limited involvement in FTX’s collapse.
Emotional Reactions from Family
Supporters filled the courtroom, including Singh’s fiancée Claire Watanabe, his parents, and his younger brother. Watanabe gasped with relief at the judge’s decision, while Singh’s parents shed tears. Judge Kaplan addressed Singh’s parents, assuring them they bore no fault in their son’s actions.
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