Former FTX executive Singh to be sentenced after ‘exemplary cooperation’

Former FTX director of engineering Nishad Singh is set to be sentenced on Wednesday for his role in what prosecutors have called one of the biggest financial frauds in US history, following his guilty plea to six felony counts of fraud and conspiracy.

Singh, 29, played a crucial role in helping authorities uncover details about Sam Bankman-Fried’s $8 billion fraud scheme at the collapsed cryptocurrency exchange FTX. Prosecutors have urged leniency in his sentencing, citing his “substantial assistance” in the investigation.

“Singh provided substantial assistance to the government in its investigation and prosecution of wrongdoers, and in its recovery of assets for victims,” the US attorney’s office in Manhattan stated in a court filing.

During Bankman-Fried’s trial, Singh testified about a crucial conversation that took place on the balcony of their shared $35 million Bahamas penthouse in September 2022, where he confronted his former boss about the massive shortfall in customer funds.

Singh’s legal team has requested no prison time, arguing that their client’s involvement was limited compared to other defendants. “His role was far more limited than any other defendant. He does not minimise his conduct; he pled guilty to serious crimes at the outset of this case and will regret his actions for the rest of his life,” his lawyers stated in their filing.

The sentencing follows that of Caroline Ellison, former executive at FTX’s sister hedge fund Alameda Research, who received two years in prison despite her cooperation. Judge Lewis Kaplan, who will also sentence Singh, noted during Ellison’s sentencing that cooperation could not serve as a “get out of jail free card” in such a serious case.

Bankman-Fried, 32, is currently serving a 25-year prison sentence at the Metropolitan Detention Center in Brooklyn following his conviction. Gary Wang, another former FTX executive who cooperated with prosecutors, is scheduled to be sentenced on 20 November.