rFormer crypto executive Nishad Singh is ready to find out his sentence on Wednesday for his role in his one-time boss Sam Bankman-Fried’s misappropriation of an estimated $8 billion in customer funds from the now-bankrupt FTX exchange.
Singh pleaded guilty to six felony counts of fraud and conspiracy, testifying as a prosecution witness last year in Bankman-Fried’s fraud trial.
In a plea agreement, Singh accepted his role in what prosecutors have called one of the largest financial frauds in US history and admitted acting as a “straw donor” in Bankman-Fried’s significant political donations.
FTX Exec Nishad Singh Faces Sentencing Amidst Cooperation Efforts in $8B Fraud
Nishad Singh, former chief engineer of FTX, faces sentencing on Wednesday for his role in the $8 billion fraud orchestrated by Sam Bankman-Fried. Singh’s involvement contributed to FTX’s collapse and massive investor losses.
Ahead of sentencing, FTX bankruptcy CEO John J. Ray III issued a letter to Judge Lewis Kaplan, emphasizing Singh’s cooperation with debtors. The letter details Singh’s efforts to assist, including returning Bahamian property bought with company funds.He also gave all documents, and responded regularly to investigative inquiries.
Ray said Singh and the debtors were working on a pact for Singh to offer continuing cooperation. This could include testifying in bankruptcy court and assisting with asset recovery.
He also wrote that Singh was among the most senior executives at FTX prior to the Chapter 11 case, Therefore, he is uniquely knowledgeable about the company’s systems and procedures. He was also introduced to many of the material events and transactions that happened.
Judge to Decide Fate of FTX Engineer Who Helped Recover Millions
Sam Bankman-Fried, 32, is serving 25 years in the Metropolitan Detention Center in Brooklyn after FTX – the cryptocurrency exchange he founded – blew up in November 2022.
Nishad Singh, at age 29, he is likely to draw less time than Bankman-Fried. Prosecutors have requested leniency for Singh. His attorneys have suggested no prison time given his extraordinary cooperation in the government’s investigation and asset recovery for victims.
Judge Kaplan has made it clear that even with cooperation, the seriousness of the case demands accountability. Last month, he sentenced former Alameda Research executive Caroline Ellison, Bankman-Fried’s ex-girlfriend, to two years in prison. Lawyers for Nishad Singh said he joined the scheme later. He came after Bankman-Fried and Ellison had decided to divert billions of FTX customer funds to cover losses at Alameda.
Bankman-Fried made his name and fortune during the cryptocurrency boom, with his net worth reaching $26B in October 2021. He was known for his donations to philanthropic causes and Democratic politicians. When the bankruptcy happened, political parties became more careful regarding crypto donations. However, as seen in 2024 US Election case, both Republicans and Democrats are accepting it. The latest went from Ripple’s co-founder Chris Larsen to Kamala Harris team and was widely criticized.
The post Nishad Singh Case: Former FTX Executive Set for Sentencing in $8B FTX Fraud appeared first on CoinGape.
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