Nishad Singh, FTX’s former engineering chief, is asking a Manhattan federal judge to spare him from prison time for his role in the crypto exchange’s collapse.
According to a recent Bloomberg report, Singh’s lawyers made the plea in a memo filed with the court, citing the circumstances of his case.
Why Plead for Mercy?
Singh’s attorney believes he should be exempt from a prison term due to his cooperation with the government and his testimony against Sam Bankman-Fried. Singh has pleaded guilty to six charges and has been working with prosecutors to bring down others involved in the FTX scandal.
During Singh’s October 2023 testimony, he claimed that he was blindsided and horrified when he discovered the extent of Alameda’s misuse of FTX customer funds. He also claimed to feel betrayed by Bankman-Fried’s response when confronted about it. He exposed that FTX founder downplayed the issue and told him that they were a little short on deliverables.
Given Singh’s cooperation and his expression of remorse, his lawyers defend that he has taken significant steps to make amends and should be spared a prison sentence.
They wrote in the sentencing commendation:
“His circumstances are extraordinary in every way that matters to sentencing: his personal history and characteristics, his role in the charged offenses, the speed with which he cooperated, his response to the collapse of FTX, and how he has rebuilt his life since then.”
Notably, Singh’s cooperative stance throughout the case proceedings is a common legal strategy that parallels the approach taken by Binance’s Changpeng Zhao. Cooperation with authorities has often led to more lenient sentencing.
Other FTX Executives Sentenced
Ryan Salame, a former executive at FTX, has been sentenced to 7.5 years in prison and ordered to pay an $11 million fine, consisting of $6 million in forfeiture and $5 million in restitution.
This sentencing comes after Sam Bankman-Fried’s conviction, who received a 25-year prison sentence, three years of supervised release, and an $11 billion forfeiture for defrauding FTX investors of over $1.7 billion.
Caroline Ellison, former CEO of Alameda Research and high-ranking executive at FTX, was also sentenced to two years in prison for her role in the FTX fraud. She worked closely with SBF, to mismanage user funds, leading to the downfall of the crypto exchange.
