Nishad Singh, the former chief engineer of FTX, has been spared prison time following a recent sentencing by a federal judge in Manhattan. Instead of incarceration, Singh received three years of supervised release due to his cooperation with authorities in the aftermath of FTX’s collapse.
On October 29, Judge Lewis A. Kaplan sentenced Singh to time served and ordered him to forfeit approximately $11 billion. The leniency in his sentence was attributed to Singh’s “remarkable” cooperation with the government and his relatively minor role in what has been described as one of the largest financial frauds in U.S. history, according to reports from NBC News.
Singh’s defense team had advocated for a light sentence, as reflected in a memo submitted to the judge on October 16. Prosecutors also acknowledged Singh’s limited involvement in FTX’s downfall, arguing that he deserved a reduced sentence for his commitment to lead an exemplary life moving forward.
In a significant turn of events last year, Singh testified against former FTX CEO Sam Bankman-Fried as part of his cooperation agreement with the government.
Earlier this year, Singh pleaded guilty to six criminal charges, including conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to violate campaign finance laws. He had faced a maximum penalty of up to 75 years in prison for his part in FTX’s multibillion-dollar fraud scheme.
With this ruling, Singh becomes the first former FTX executive to avoid incarceration for their role in the scandal. He joins three other former executives who have faced legal consequences: Sam Bankman-Fried, who was sentenced to 25 years in prison; Caroline Ellison, former CEO of Alameda Research, who received a two-year sentence; and Ryan Salame, who began a 7.5-year prison sentence earlier this month. Additionally, FTX co-founder Gary Wang is scheduled to be sentenced on November 20.
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