Nishad Singh Receives No Prison Time for FTX Fraud Charges

Nishad Singh, the former engineering director of FTX, has escaped prison time after pleading guilty to fraud and other charges related to the collapse of the crypto exchange.

Judge Lewis Kaplan sentenced Singh to time served and three years of supervised release, as reported by Inner City Press. Singh’s legal team argued that his role in the situation was significantly more limited compared to other defendants. He pleaded guilty in February 2023 to six offenses, including fraud and conspiracy to commit money laundering.

FTX filed for bankruptcy in November 2022 after facing a liquidity crisis and accusations of fraud, leading to the downfall of its affiliated trading firm, Alameda Research.

In contrast, former CEO Sam Bankman-Fried was sentenced to nearly 25 years in prison for multiple counts of fraud. Singh cooperated with authorities, providing crucial testimony against Bankman-Fried during his trial in October 2023. Singh described the extravagant living conditions they enjoyed, such as their lavish penthouse in the Bahamas, and recalled a chilling conversation he had with Bankman-Fried regarding the financial troubles of Alameda, where he felt blindsided and betrayed.

Judge Kaplan noted that Singh’s involvement was less significant compared to that of Bankman-Fried and former Alameda co-CEO Caroline Ellison, who received a two-year prison sentence for her cooperation with prosecutors.

In his role after the bankruptcy, John Ray III, the current CEO of FTX, recognized Singh's ongoing assistance in the recovery process for creditors. A U.S. judge recently approved FTX's bankruptcy plan, which will reimburse a vast majority of creditors at least 118% of their claims.

However, Singh has faced accusations of inaccuracies in his statements regarding his interactions with Bankman-Fried and FTX Japan’s former COO, Seth Melamed, who claimed that Singh attempted to influence regulatory compliance inappropriately.

Update: Oct. 30, 9:10 p.m. UTC – Additional details about Melamed's filing included.