Nishad Singh, the former director of engineering at FTX, was sentenced to time served by a federal judge on Wednesday. This means that he will not be going to prison like some of his former colleagues. However, he was ordered to pay $11 billion in restitution. Singh, who is 29 years old, pleaded guilty to six criminal counts including wire fraud and conspiracy back in February. He is the fourth FTX executive to be sentenced for his role in the fraud.
Unlike some of the others involved in the case, Singh was not aware of the fraud until just two months before the collapse of the exchange. The judge, District Judge Lewis Kaplan of the Southern District of New York (SDNY), acknowledged Singh’s cooperation with prosecutors. Singh informed the government of crimes they were not aware of and even testified against his childhood friend, Sam Bankman-Fried, in court last October.
Despite knowing about the financial troubles at FTX, Singh still went ahead with the purchase of a $3.7 million estate in Washington’s Orcas Island. His lawyer described this as a “deep mistake.” The sentence was a relief for Singh and his family, who were present in court during the hearing. More than 20 friends and family members attended, and there were tears of relief when it was announced that Singh would not be going to prison.
In a court filing, Singh’s lawyers highlighted his limited involvement in the scheme and described him as an “uncommonly selfless individual.” They also emphasized his cooperation with the prosecutions of other individuals involved in the case. The judge, speaking from a personal perspective, reassured Singh’s parents that they did not see anything wrong with what they had done.
This case sheds light on the importance of cooperation with prosecutors and the potential outcomes of such cooperation. While some individuals received lengthy prison sentences, Singh’s cooperation played a role in him avoiding prison time. It also highlights the impact of financial crimes on individuals and their families, as seen through the reactions of Singh’s loved ones during the sentencing hearing.
