Nishad Singh Seeks Prison Exemption Amid FTX Fallout: Report

Attorneys representing former FTX head of engineering Nishad Singh have reportedly requested a New York judge to refrain from imposing any prison sentence on their client.

The lawyers emphasized his minor involvement in the fatal events surrounding the crypto exchange’s downfall, his cooperation with law enforcement, and his dedication to leading an “exemplary life” as justifications for leniency.

Lawyers Describe Singh as “Uncommonly Selfless”

Singh, who is set to be sentenced on October 30, is one of four senior executives who admitted guilt to a series of criminal charges following investigations into the exchange’s multi-billion dollar collapse.

As reported by Bloomberg here, the 27-year-old’s legal team submitted a sentencing recommendation memo on October 16, urging the court to show leniency toward their client.

In their defense, the attorneys pointed to Singh’s “extraordinary circumstances,” highlighting his personal background, his limited participation in the wrongful actions, and his efforts to restore his life following the exchange’s collapse.

“His role was far more limited than any other defendant. He does not downplay his conduct; he pled guilty to serious crimes from the outset of this case and will reflect on his actions for the rest of his life.”

Moreover, they portrayed the engineer as an “uncommonly selfless individual,” accompanied by over 100 letters from family, friends, and previous colleagues, endorsing his character. In February 2023, Singh pleaded guilty to six criminal charges, including three counts of conspiracy to commit fraud.

A childhood friend of FTX founder Sam Bankman-Fried (SBF), Singh developed the code that provided the exchange’s sister company, Alameda Research, with preferential treatment on the platform. Additionally, he assisted SBF in backdating FTX transactions, making the company appear more financially robust than it genuinely was.

Prosecutors also indicated that the Berkeley graduate was aware of SBF’s misappropriation of customer funds while the company struggled amidst the crypto winter that shook the industry in 2022. Furthermore, he allegedly withdrew at least $6 million for personal use while the company was on the verge of bankruptcy.

Singh has previously expressed remorse for his involvement in the exchange’s demise and vowed to return all the money he earned from the scheme. He was also among the first to cooperate with investigators when inquiries began into Bankman-Fried and ex-FTX Digital Markets co-CEO Ryan Salame.

Former Executives Facing Justice

SBF is currently imprisoned, serving a 25-year sentence after being found guilty of seven counts of fraud and conspiracy. Meanwhile, Salame, who fell to charges related to unlawful political contributions, began his 90-month prison sentence on October 11.

Another significant figure in the case, Caroline Ellison, will serve two years in prison starting January 1, 2025. As part of her plea agreement, she also consented to forfeit $11 billion.

The last member of this group, Gary Wang, who formerly acted as FTX’s technology chief, is scheduled to be sentenced on November 20 and faces up to 75 years in prison for his involvement in the fraud.