Former FTX exec appeals for lighter sentence
Nishad Singh, the former engineering director at FTX, has requested leniency from a federal judge, seeking “time served and supervised release” for his involvement in the downfall of the cryptocurrency exchange.
Singh, who pleaded guilty to fraud and conspiracy charges in February 2023, is set to appear in court on October 30 for sentencing.
In an October 16 filing with the U.S. District Court for the Southern District of New York, Singh’s legal team emphasized his comparatively limited role in the broader FTX scheme, arguing that he was less involved than other key figures, such as FTX founder Sam Bankman-Fried and former Alameda Research CEO Caroline Ellison.
Singh’s lawyers stressed that his involvement in criminal activity began only in September 2022, after core decisions regarding the misuse of billions of dollars in customer funds had already been made by Bankman-Fried and Ellison.
The request for a more lenient sentence is supported by Singh’s cooperation with federal prosecutors throughout the FTX investigation.
Singh admitted to aiding Bankman-Fried in misrepresenting the financial health of FTX, a move that ultimately harmed many investors.
In a personal letter to the court, Singh expressed remorse, stating, “I fully accept the consequences of my actions and the judgment you will pass.”
Singh’s legal team is pushing for a different outcome from that of Ellison, who was sentenced to two years in prison despite her cooperation.
Singh’s lawyers argue that while cooperation was a factor in Ellison’s case, Singh’s role was smaller, and his continued assistance to prosecutors merits a lighter sentence.
Singh’s testimony played a critical part in Bankman-Fried’s trial, where the former CEO was convicted on multiple felony charges and sentenced to 25 years in prison.
Other FTX executives, including Ellison and Gary Wang, also pleaded guilty and cooperated with prosecutors, with sentencing hearings for Wang scheduled for later this year.
Singh’s upcoming sentencing hearing will determine how his cooperation and expressed regret will influence his fate.
Prosecutors have yet to file their official recommendation, but Singh’s legal team hopes his role in uncovering the larger FTX scandal will lead to a more favourable outcome.
