An ex-FTX executive who testified against the cryptocurrency firm’s founder at his trial last year was spared a prison sentence by a federal judge on Wednesday. Nishad Singh, the company’s former engineering director, was commended by Judge Lewis A. Kaplan for his substantial cooperation in the case.
Judge Kaplan noted that Singh was not aware of the billions of dollars that were misappropriated from FTX customer accounts and investors until shortly before the fraud was exposed. Singh, 29, testified at the trial of FTX founder Sam Bankman-Fried, expressing shock and remorse upon discovering the extent of the fraud within the once-celebrated firm.
During his sentencing, Singh expressed deep regret for his involvement in the fraud, acknowledging that he had strayed from his values. Bankman-Fried, who was convicted last November, is currently serving a 25-year sentence for his role in the fraud.
Defense attorney Andrew Goldstein argued for leniency on behalf of Singh, emphasizing that his client had only become aware of the fraudulent activities shortly before FTX collapsed into bankruptcy. Goldstein suggested that sparing Singh from prison time would encourage future cooperators in criminal cases to come forward.
Assistant U.S. Attorney Nicolas Roos praised Singh for his cooperation, stating that he provided crucial information that helped uncover additional crimes related to the case. Roos highlighted Singh's role in revealing campaign finance violations and private conversations with Bankman-Fried, which expedited the government's investigation and led to charges against multiple individuals.
Singh's cooperation was described as 'remarkable' by Judge Kaplan, who ultimately decided not to impose a prison sentence on him. The case underscores the importance of cooperation in uncovering complex financial crimes and holding perpetrators accountable.
