Former FTX Exec Nishad Singh Gets No Jail Time, Ordered To Forfeit $11 Billion

Former FTX executive Nishad Singh was sentenced to time served and three years of supervised release on Wednesday, becoming the fourth former employee of the collapsed cryptocurrency exchange to face legal consequences.

In addition to his sentence, Singh, who once served as FTX’s head of engineering, was ordered to forfeit $11 billion.

He had pleaded guilty to six criminal charges early last year. The charges include conspiracy to commit securities fraud and violations of campaign finance laws.

He faced a maximum sentence of 75 years in prison. However, Judge Lewis Kaplan acknowledged Singh’s cooperation with authorities. It was noted that his involvement in the fraud was also less than that of FTX founder Sam Bankman-Fried or Caroline Ellison, the former CEO of Alameda Research.

Ellison, who provided key testimony against Bankman-Fried, recently received a two-year prison sentence.

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Singh Expresses Remorse In Statement

In a soft-spoken statement before the court, Singh expressed remorse for straying from his values. He acknowledged that he did not expect forgiveness.

He emphasized that assisting in the government’s investigation had given him a sense of purpose. Just prior to his hearing, Singh was seen pacing nervously, rehearsing his statement from a single printed page.

FTX’s downfall began in November 2022 when the exchange was unable to meet customer withdrawal demands. This lead to allegations of $8 billion in stolen client funds.

Bankman-Fried was sentenced to 25 years in prison in March2024. He was also ordered to forfeit $11 billion.

Andrew Goldstein, Singh’s attorney and a former assistant US attorney, argued that Singh became involved in FTX’s wrongdoing late in the game. He highlighted Singh’s extensive cooperation with investigators, including his testimony at Bankman-Fried’s trial.

Andrew D. Goldstein, Attorney to Former FTX Chief Engineer Nishad Singh

Goldstein once served as chief of the public corruption unit in the U.S. Attorney’s Office for the Southern District of New York (SDNY), the same unit that had been investigating FTX.

In addition to his… pic.twitter.com/HCECGuegzQ

— FTX Historian (@historian_ftx) October 31, 2024

Prosecutors revealed that they met with Singh on at least 24 occasions, where he displayed earnest remorse and assisted in uncovering criminal conduct previously unknown to authorities.

Nicolas Roos, one of the trial prosecutors, noted that Singh was instrumental in bringing a campaign finance scheme to light. Roos stated that it was “totally unknown” to the government prior to Singh’s cooperation.

Bankman-Fried was originally charged with using stolen customer funds to make $100 million in campaign contributions for the 2022 midterm elections.

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Judge Kaplan Acknowledges Singh’s Cooperation

In sentencing, Judge Kaplan acknowledged Singh’s cooperation, stating, “You did the right thing.” Over 30 friends and family members, including Singh’s fiancée and parents, attended the hearing, with more than 100 letters submitted on his behalf.

Notably, Gabe Bankman-Fried, brother of the disgraced founder, called Singh “one of the kindest people [he has] ever known” and requested compassion from the judge.

John Ray, who took over as FTX CEO post-bankruptcy, also vouched for Singh. He cited his valuable assistance during the proceedings and his voluntary return of Bahamian real estate acquired with FTX funds.

As Singh moves forward, the case against his former colleagues continues, with Gary Wang, FTX’s co-founder and ex-technology chief, facing sentencing on November 20.

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