FTX insider Nishad Singh has been sentenced to time served and three years of supervised release by a federal judge. This means, he will technically serve no prison time.
Background
- The former Director of Engineering at FTX was also ordered to forfeit $11 billion
- Singh faced a maximum sentence of 75 years
- However, Judge Lewis Kaplan highlighted that his cooperation with the government was “remarkable”
- In retrospect, he concluded that Singh’s involvement with FTX’s fraud was significantly limited when compared to FTX Founder Sam Bankman-Fried or Alameda Research CEO Caroline Ellison
Why should you pay attention?
- Unlike his former colleagues, Singh has been exempted from serving prison time
- During the hearing, it was revealed that the executive “brought to the Government’s attention criminal conduct that the Government was not aware of and, in some cases, may have never discovered but for Singh’s cooperation”
Who said what?
- In a statement to the court, Singh said that he had strayed from his values
- He affirmed that assisting the government’s investigation gave him purpose
- Singh also outrightly stated that he didn’t expect forgiveness
- Prosecutors brought to light that they met with Singh at least 24 times
- According to them, he demonstrated “earnest remorse and eagerness to assist”
- At the time of the verdict, Judge Kaplan said,
“I don't see anything you did wrong”
Zooming out
- Last month, Alameda Research CEO Caroline Ellison was sentenced to two years in prison
- Even she was ordered to forfeit $11 billion for her role in the exchange’s collapse
- Ellison kept apologizing to the people she had hurt and underlined that she was deeply ashamed
- She regretted not being brave enough to walk away from FTX and Bankman-Fried
- Nevertheless, the judge refrained from giving her a second chance
- While delivering Singh’s final hearing, the judge recalled,
"Your case is not the case that Miss Ellison's was. She was involved from the beginning. She knew for years”
